Originally Posted by
slammedxonair
Yea I have been doing it for a couple years now and I just take my books to my CPA at the end of the year. Thats kind of how I have been doing mine but I was just looking to see what others had to say as I really have not had to really deal with inventory and many wasted parts up till this year where I'm starting to cut alot more parts. And yea its just me here for right now.
Here I don't "inventory" raw materials, it is written off as cost of goods sold as soon as it arrives. Likewise If I cut stock parts, they don't go into "inventory" either.
It really doesn't take a very big rack of 1045 CRR & other bar stock + 1/4" through 1" HR plate to add up several thousand dollars of "inventory"
I just don't make up "stock" components (other than torch table items) & then only to use scrap parts of a sheet that would otherwise end up in the scrap hopper.
Now if you have this stuff cataloged as of July1 you pay personal property tax on your "inventory".
It really depends on how creative your bookkeeper/CPA will allow you to get.
Good accounting services aren't cheap either. The more detailed your books become the more involved your tax return(s) get.
If it works.....Don't fix it!