Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

that is exactly what we are doing, so I think you hit the nail on the head.

This spouting off is worth what you paid for it.

Actually, is is worth much more. Thanks!!
Print the post  


Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.