[My Handmade Biz] When does Inventory & COGS hit my bookkeeping? Sometimes it can be 2 or 3 years before you sell an item and get to recognize the COGS. This is why keeping detailed records is important.

My Handmade Biz-When does Inventory & COGS hit my bookkeeping?

I bet you’re wondering, WHEN does Inventory & COGS (Cost of Goods Sold) hit my bookkeeping?  More specifically when do project costs appear on your Profit & Loss Report under Cost of Goods Sold (if you want to go all accounting speak) and then what about my tax return? If you’ve been following along this …

My Handmade Biz-Why track Cost of Goods Sold? It's important to know what it cost you to make an item so you can determine a good sales price.

My Handmade Biz-Why Track Cost of Goods Sold?

Why do I need to track Cost of Goods Sold and WHAT exactly is it? Understanding what Cost of Goods Sold is and WHY it’s important to track it is certainly a confusing thing for most handmade and creative business owners.  Let’s see if we can clear that up. Over the last couple of weeks …

Inventory

My Handmade Biz-What is Inventory?

INVENTORY – an accounting term and bookkeeping task that causes terror and total confusion in the hearts and minds of makers, designers, or anyone who owns a handmade or creative business. Let’s start with – Why is inventory important? Materials and supplies are probably the BIGGEST spending category many of us have in our handmade …