Turbotax showing a negative number when starting "income & expenses"-same (but negative) value of inventory at the end of the year

[al123]

I am using turbotax again for the second year of being self employed. I see before I started my "income and expenses" section there is already a negative number which is the the same number (but negative) of the value of the inventory at the end of the year (line 41). Is this normal?

[Mike9241]

if you account for inventories then before you enter any business income, expenses or ending inventory, TT knows beginning inventory which it pulls from last year's ending inventory and uses $0 for ending inventory. this creates a loss equal to the beginning inventory. 

a taxpayer that accounts for inventory  must use the accrual method of accounting for its purchase and sales IRS REG 1.446-1(c)(2)

however, certain taxpayers with under $25 million in annual gross receipts can file for a change in accounting method (form 3115) to convert to the cash method and avoid having to account for inventories.  if you seek to pursue this you should consult with a tax pro to see if you qualify.