Home – New Forums Money matters How to categorise items that will be sold?

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  • #995802
    N45H
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    Hey guys, I’m stepping up my accounting game and I’ve hit a bit of confusion. How should I be categorising items bought at wholesale that are intended to be sold at a profit?

    My guess it is should fall under Cost of Goods Sold, would that be correct?

    Should each item for sale have it’s own category as distinct from other items for sale?

    Thanks :)

    #1204016
    Tact
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    Hi…N45H,

    That’s a really long piece of string. All depends on your industry and how you want to run the business.

    Generally, yes, Cost of Goods Sold would be the right place to put those purchases.

    I’d need a bit more information to answer the second query.

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