How you handle the accounting of your business does not affect how you report your taxes. The question about the method of accounting is referring to your bookkeeping method. You will still report your activities for taxes as the cash method. Most small business owners, who don't have an accountant, use the cash method for their accounting as well.
When you enter your business activities into TurboTax this year you should enter the value of your materials at 01/01/2022 as beginning inventory and then proceed with your transactions to report your cost of goods sold. To get to this section in TurboTax Online you can follow these steps:
- Within your tax return use the magnifying glass icon to search for Schedule C
- Click the Jump to link
- Click Edit for the line of work
- Scroll down to Expenses and click Start or Edit if the category you want is shown
- If you don't see the category you want listed click Add expenses for this work
- Scroll to and mark the box for Inventory - if you don't see it on the list, scroll down to the Less Common section and click the down arrow and show more until you do
- Walk through the steps entering beginning and ending inventory values along with any purchases made in 2022
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
