On this episode I'm joined by Keila Hill-Trawick, founder of Little Fish Accounting in Washington D.C.
This episode is sponsored by my FREE training: 3 legal & tax mistakes made by creative entrepreneurs & how you can avoid them. Sign up for this free Masterclass here to unf*ck your biz.
Today we answer the question, "I am clueless when it comes to 'inventory.' I don’t know what items are considered 'supplies,' capital, depreciation, I also struggle when I do my town property tax filings because they want to tax furniture, my computer but these are dual use items." while breaking down the differences between supplies, cost of goods, and inventory.
Supplies - what you use to make the "thing."
Inventory - the final product. Inventory is an asset, not an expense. The cost of all the components that go into making the "thing" sit as the inventory cost.
Cost of goods sold - Once you sell the "thing," you can expense what it cost to make it. This is so the IRS can make sure you aren't hoarding inventory and considering it expenses.
Listen to today's episode as we further break down supplies, inventory, and cost of good sold.
Questions from my Tuesday episodes come from my free Facebook group, Braden's Besties. Come join us.
Get in touch with our guest
Keila Hill-Trawick, founder of Little Fish Accounting
Check out Little Fish Accounting's website
Follow Little Fish Accounting on Instagram
Like Little Fish Academy on Facebook
Have a follow up questions or want to meet some fellow kickass biz owners who also are trying to get their shit legit? Come be a bestie and join us in the Facebook Group.
You'll learn: what the three mistakes are; how to fix them; and also how to work with me to get your legal & tax shit legit.