RobertB4444
Expert Alumni

Business & farm

Start Up costs are the things you have to do to get your business ready to begin.  In your case you had to pay a franchise fee and go to a franchise training class.  These are things of value that should last over the useful life of the business and therefore are amortized over time.  

 

Start Up supplies, though - those sound like they might be things that are used up in the first year of business.  If you start a restaurant the first meat that you buy is not part of your start-up costs - it's supplies that are consumed immediately.

 

So only you know really.  When you're entering the start up costs you enter the things that you bought and paid for to start the business,  that are going to last for more than a year and provide value over their useful life.  That's the same rules for determining what is an asset that needs to be depreciated as your business continues.

 

When entering expenses they should be items that will be used up within a year.  So the $16,000 that you have here as start up supplies sounds like it's probably an expense.  But only you really know that.

 

Starting a new business can be a lot.  Good luck!

 

@Frtzcat 

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