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If I am a shipping services company would my cost of shipping (what I pay UPS) be a COGS or other business expense?

 
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Best answer 07-18-2019

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Re: If I am a shipping services company would my cost of shipping (what I pay UPS) be a COGS or other business expense?

If all you sell is shipping I would post it all as regular business expense. You do not have inventory that needs adjusted on page 2 of Schedule C which is where COGS comes into play. The G stands for Goods and you do not sell any Goods - only  services

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Re: If I am a shipping services company would my cost of shipping (what I pay UPS) be a COGS or other business expense?

COGS deals with inventory sales, especially when you fill out the tax form

COS - Cost of Sale is a COGS type of account typically used by service companies

Established Community Backer ***

Re: If I am a shipping services company would my cost of shipping (what I pay UPS) be a COGS or other business expense?

If all you sell is shipping I would post it all as regular business expense. You do not have inventory that needs adjusted on page 2 of Schedule C which is where COGS comes into play. The G stands for Goods and you do not sell any Goods - only  services

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Re: If I am a shipping services company would my cost of shipping (what I pay UPS) be a COGS or other business expense?

Thank you so much for taking the time to answer my question. I appreciate your detail and now I understand the difference. Thank you again

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