I make jewelry. 2 years ago I had an account do my taxes and she told me that all my supplies, including my jewelry materials were Supplies. She said I did not need to count inventory since I made under 1 mil. Recently I've heard that those supplies should be counted as Cost of Goods Sold and that I need to take inventory. Which is it? And if I filed claiming everything as supplies for the last two years, how would I count my starting inventory from this year? I'd haven idea what it was!
