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|Subject: Re: I am such a Wannabee!||Date: 2/24/2004 3:07 PM|
|Author: darelian||Number: 1961 of 5069|
Sorry to join in late. I'm not sure for IRS regulations, but for her (zsimpsion) business records can use either GAAP or cash basis accounting. If she uses cash basis, the inventory is an expense when the business pays for it. I *think* she can also report her records this way for IRS purposes, which is how she would have expensed the inventory the period she bought it, then realized the revenue when she received cash from selling it. I imagine this is what her accountants were telling her. Many sole proprietorships use cash basis accounting.
This spouting off is worth what you paid for it.
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