topic Inventory cost of goods sold.... in Get your taxes done using TurboTax

Inventory cost of goods sold....

confusedrf — Thu, 27 Feb 2025 02:33:52 GMT

We've used TurboTax fo

This forum is always been a good source for help for over a decade now.

My wife is a pt stylist with no employees who rents. She sells no products in her shop as most people just buy them at Walmart. She has this book that has a line for merchandise and inventory and she stores in there the cost of all the supplies she needs to run her business... shampoo color whatever.

We've always entered that amount in the inventory/cost of goods sold area and sometimes the product prompts for an opening inventory and an ending inventory which is generally always the same. Speaking with another stylist if I understood correctly they enter this information somewhere else but they weren't sure where.

Are we good putting it where we've been putting it for at least 10 years?

Re: Inventory cost of goods sold....

DawnC — Thu, 27 Feb 2025 02:50:22 GMT

Yes, your system works just fine. You can choose to use the inventory account or not. You can use zero for the beginning and ending inventory balances each year, so that all the purchases are expensed in the current year.

See - Do I need to report inventory?

Re: Inventory cost of goods sold....

confusedrf — Thu, 27 Feb 2025 02:51:16 GMT

I think she usually puts down a couple hundred for beginning inventory each year as she always has a few colors and perms and the shop. But thanks.

Re: Inventory cost of goods sold....

DawnC — Thu, 27 Feb 2025 02:56:21 GMT

That is fine too. Just be careful to make sure the current year's beginning inventory matches the previous year's ending inventory.