Absolutely use COGS it's a direct cost of goods sold. We often do this and it especially helps in states with franchise tax. In Texas for example anything under 1 mil doesn't pay franchise fees. So if Rev- COGS= less than 1mil no franchise fees.
You can easily change the chart of account from an expense to a COGS. Just did it today in fact:)
@bvindas wrote:
I am working with a company who provides a driveway maintenance service. They use trucks in order to provide the service. Up until now, I have been expensing fuel as car & truck expense but the company is reavaluating his pricing based on his costs. and am wondering if I should be expensing fuel as COGS.
