When Inventory + COGS Actually Hit Your Bookkeeping (And Your Taxes)
Confused about when inventory and Cost of Goods Sold actually affect your taxes? This post breaks down when inventory becomes COGS, why your profit can feel “off,” and how it all shows up on your Schedule C—without accounting jargon or panic.
This post was originally written & published 1/27/2020 and has been updated.
Why Track Cost of Goods Sold? The Missing Link to Profit in Your Handmade Business
Selling a lot but still feeling like the profit is… missing? 😵💫 Cost of Goods Sold (COGS) is the missing link between your inventory and your real profit. In this post, you’ll learn what COGS is (in plain English), why handmade business owners should track it, and how it connects to pricing and tax time—without the accounting headache. 🧶📒