Transaction

Zala98-0 · ‎October 28, 2024

Hello Everyone, Here I am asking question again. I'm dealing with a Spa business and just wondering what's the proper category I should put the candles to? This is the first time I'm seeing a transaction spent on a candle. Is it going to COGS or to Office Expense? Your help will be very much appreciated.

kabel1657

Hey @Zala98-0,

Great question. For a spa business, candles are typically part of the ambiance, so they usually go under "Office Expenses" or "Supplies" rather than COGS, since they're not directly resold or part of a specific treatment.

But if candles are sold to clients, you’d classify them under COGS. It’s all about the purpose—hope this helps!

P.S.: I’m a QuickBooks ProAdvisor with 7+ years of experience. Need help with QuickBooks Bookkeeping?

Google my username, @kabel1657, to see my proven track record!

View solution in original post

kabel1657

Hey @Zala98-0,

Great question. For a spa business, candles are typically part of the ambiance, so they usually go under "Office Expenses" or "Supplies" rather than COGS, since they're not directly resold or part of a specific treatment.

But if candles are sold to clients, you’d classify them under COGS. It’s all about the purpose—hope this helps!

P.S.: I’m a QuickBooks ProAdvisor with 7+ years of experience. Need help with QuickBooks Bookkeeping?

Google my username, @kabel1657, to see my proven track record!

Zala98-0

Thank you. Want to make sure that I'm doing it correctly. Is Office Supplies & Software good to book this transaction to?

KimAnnVA

Office Expenses, Business Expenses, Sundries. Don't forget you can edit your chart of accounts names.

FishingForAnswers

@KimAnnVA This is a great point, and one a lot of people get hung up on; the IRS is hardly going to fine you for making your chart your own.

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