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DChrisDDChrisD Member Posts: 1

Evening people! I am an IT consultant selling hardware and my time, BUT - I do not make any profit on goods sold, its purely time where I receive profit. I have uploaded loads of receipts, and categorised them under IT Hardware. As everything you buy business-wise is tax deductible (I think :-)) is there any reason to re-categorise the items for sale rather than items I buy for business use? ie "cost of goods sold" as the resultant profit would be negligible? I ran a report and noticed the cost of goods was at zero, obviously, and not sure if it really matters...

Many Thanks,

Chris

in Accounting Technical Support

Comments

  • BarsinBarsin Member, Moderator Posts: 2,041 ✭✭✭

    Hey there @DChrisD

    Have a read over our INVENTORY TRACKING article in our help center. It sounds to me like if you buy goods and sell them for the same cost, this will always end up balancing to $0.

    When it comes to your labour however you'll want to create a separate line item in your invoices for a separate income account dedicated to "labour" and keep your cost of goods to a different income account on a different line item.

    Hope this helps but let me know if you have any other questions.

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