inventory

[Andrew and Rebeca Anderson]

Mr. Monroe,
Here in Texas we are required to inventory our supplies and pay 
business property tax on what we posses each January 1st.  This is 
for supplies (toilet paper and pencils too) and products, tools, 
books everything.  Some people avoid this by not registering a 
business name or not organizing a business entity.  They're still 
supposed to pay it but they slip through the cracks so-to-speak 
because they didn't lift that good 'ole business flag for the 
government to see.

This year I estimated the value of what I had.  They want to argue 
with me, I'll let them count paper punchings. ;-)

Andrew Anderson

At 07:06 PM 5/31/2006, you wrote:
>Daniel,
>
>In case it hasn't been mentioned, if this is for tax filing purposes, e.g.
>end of year shtuff, none of these items need be inventoried.  I have zero
>inventory in my business.  Most things that go into clients pianos are
>simply "supplies."  That is, when I buy center pins, wire, glues, felts,
>etc. just to have ready when needed, those purchases go into the books as
>supplies.  Other items, such as Dampp Chasers, String Covers, and those
>larger ticket items go into Cost of Goods Sold (COGS).  They are not things
>I "keep in stock", but are purchased for resale to a specific client - e.g.
>COGS.
>
>Same thing applies if I purchase any quantities of those smaller items like
>center pins, flanges, butt springs, elbows, etc., if they are for a specific
>client, they are COGS, not supplies.
>
>In short, Inventories are an unnecessary headache for MOST of us.
>
>Regards,
>William R. Monroe
>
> > hi list
> > i'm wanting to start keeping track of my inventory for tax purposes. the
> > only hangup i'm having though is how to keep track of stuff like piano
>wire.