<HTML>In a message dated 4/13/01 8:31:30 AM Pacific Daylight Time, kellybill_m@hotmail.com writes: <BLOCKQUOTE TYPE=CITE style="BORDER-LEFT: #0000ff 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px">I am new to the sport and am curious about a couple of tax items.  From a previous (and continuing) business of mine in photography, as a sole proprieter, I have used the Accrual accounting method in which I have to do a physical inventory of all my prints, frames, et cetera.   Since 2001 will likely be the first year I can call myself a professional technician, I am curious how we deal with all the little items like punchings, pins, et cetera that will likely be billed as parts for repairs we do, and therefore would seem to be candidates for a physical inventory at the end of the year.  Somehow though, that seems a bit rediculous to me.  I can just visiualize a bunch of technicians getting together at their PTG chapter meetings to have a punching counting tax party.  Any help in knowing what we call supplies, vs. inventory, as well as whether or not any sort of physical counting is done would be appreciated. William R. Monroe Associate Member, PTG Soon to be SLC, UT </BLOCKQUOTE> Switch to the cash method of accounting, then you do not have to deal with inventory  counting. The question is asked on your Schedule C.  Accrual is necessary if you have retail store but not if you have a shop full of parts. Dave Peake, RPT Portland Chapter Oregon City, OR www.davespianoworks.locality.com </HTML>