You establish your "parts" as inventory, non-inventory (order-in items) sold to customers, or as materials/supplies (written of yearly). When you establish the inventory/non-inventory (to sell) items you indicate how much they cost (COGS) and how much you charge for them. Things like shipping etc. and inventory tax are expensed out of profit separately. Now that said, your accountant can be of immense help here. Becoming a tax expert annually has to really cut into your money-earning piano- service time. The fee you pay your account (choose an enrolled agent) is tax deductible and gives you the best outcome every time. I used to be "independent" and do my own taxes searching up all the ways to save. I know how difficult this is to turn over to an expert but my accountant turned my large liability into a comfortable refund in short order. The IRS says that most people who file, overpay. Chew on that for a bit. You don't expect pianists to insist on tuning their own pianos do you? The Internal Revenue Code makes the Bible look tiny, do you really think you are an expert in it? Your accountant will be familiar with Quickbooks. It is one of the industry standard programs out there and your accountant can walk you through how to use it correctly and to your (and the accountant's) best advantage. YMMV Andrew Anderson On Feb 24, 2011, at 7:42 AM, Matthew Todd wrote: > Does anyone else here use quickbooks for their financials? > > Could some of you please e-mail me and let me how I classify > wholesale parts cost separate from my income? I'd rather not pay > taxes on parts that I purchased for customers. > > Thanks! > > TODD PIANO WORKS > Matthew Todd, Piano Technician > (979) 248-9578 > http://www.toddpianoworks.com > -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://ptg.org/pipermail/pianotech.php/attachments/20110224/0d0da74a/attachment.htm>
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