You don't need to use the Cost of Good Sold (COGS) and/or related accounts (purchases, labor, & materials/supplies) unless you keep and track inventory, including beginning of year and end of year physical inventory counts and valuations using the accrual basis accounting method.
Do I need to report inventory? You can opt to use the cash basis of accounting and ignore the beginning and ending year inventory valuations and enter zero for both. Just be sure not to double up your entries.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
