- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Other questions
Yes, there are other options. From an accounting and IRS perspective, if you don't track inventory, you don't expense the cost of items sold to cost of goods sold - you expense the cost of the items sold directly to an expense account when you purchase them or contribute them to your business.
To do this, create an expense account called "Supplies expense" or something similar. This will be the account that you expense your items to. Then, when you either sell the item from your personal collection or you contribute them to the business, create a journal entry: debit the newly-created supplies expense account and credit your owner's capital equity account. That books your expense and your contribution to the item sold. Finally, you just need to create a sales receipt/invoice for your customer for the sale price.