Hey accounting types - why do businesses do inventory at the end of the year?
Inventory
- Thread starter Ridemonkey
- Start date
For tax purposes...
Lol well duh! How about some details....dh girlie said:
Something about making sure stock purchased - sales = stock on hand. You don't get taxed on loses.
Ok, I pulled that right out of my butt. Am I right?
Ok, I pulled that right out of my butt. Am I right?
Ridemonkey said:
Even more so that we can have accurate books at the end of the year. It is when you reconcile your perpetual (what you have on hand) with your books.dh girlie said:
Most companies take inventory more than just once a year. Generally twice so they can keep track of their "shrink" and "swell".
We inventory our vehicles monthly and parts annually. It depends on how big your inventory is, how cumbersome and how good your controls are.McGRP01 said:
This is true.Mtb_Rob_FL said:
McGRP01 said:
Would I lie on the
?
HAHAHAHA! I don't have any...but what I THINK is...it gets slow at the end of the year so it gives people something to do...Ridemonkey said:
umm.........depreciation and if live in places like Texas dont you have to annualy pay taxes on your stuff?
Some companies, including mine, do inventory at the end of every month. Mainly for revue and cost issues.Ridemonkey said:
ok so now answer this. Why are debits on the left and credits on the right?
This could turn exciting any minute now
This could turn exciting any minute now
After 6 years of schooling I still couldn't tell you the answer....they just are!!! :eviltonguMtb_Rob_FL said:
not an accounting type, nor do I play one on TV, but they are frikking ANNOYING!!!!! we just did ours at REI and it nearly killed me off. try selling product from boxes/areas of the warehouse that we're not supposed to sell stuff from. argh!Ridemonkey said:
Try taking what you guys sell, breaking it apart into each component, and counting the entire stock that way.slowSSer said:
Raw materials and finished goods warehouse inventory at Mountain Hardwear. We do it once a year, and it's mandatory for EVERYONE.
I got to count buckles, care labels and zippers for two days. WEE!
H8R said:
Shut up and get back to work before I mess with your payroll check
:eviltongu
H8R said:
If you mess with my threads I am going to tell everyone that you are a hippy.
Here is a great rule(s) to live by in the Corporate World.H8R said:Hey I'm on lunch, go sell some crampons or something.
In no particular order
- Don't piss off the IT Department
- Don't piss off the Accounting Department
H8R said:DO NOT piss off the cafeteria staff.
Do you work in jail or something?
Mtb_Rob_FL said:
-S.S.-
Any chance of getting some Ridemonkey deals on the MH goodies???H8R said:
-S.S.-
You have to get your costs "right" so you count to see what the value of the inventory you have left is. That way you can somewhat accurately say what the costs of the inventory you sold was.
Why can't you just add up your sales?Heidi said:
When I worked for PricewaterhouseCoopers I had to count all types of things...Balley's fine leather stuff, cars, vegetables, oil levels, movies...
Inventory is taken is most small businesses to calculate cost of goods sold. In your basic business (mom and pop), you can take it just twice a year, beg and end.
Beg Inv
+ Purch
= cost of goods avail for sale
(End Inv)
=cost of goods sold
BAM!!
Debits are on the left and credits are on the right because that's how it's always been and how it always will be. Duh...
Oh yeah, shirts??? Co'mon RM...
Beg Inv
+ Purch
= cost of goods avail for sale
(End Inv)
=cost of goods sold
BAM!!
Debits are on the left and credits are on the right because that's how it's always been and how it always will be. Duh...
Oh yeah, shirts??? Co'mon RM...
Sales don't give you the cost of good sold. You sell something for one amount, but chances are, that's not the amount you bought it for, or produced it for.Ridemonkey said:
The only way I get these things done is to publically announce some milestone. By Monday I'll have a list of final design candidates and we can vote on them.reflux said:
Is accounting less complicated in Canada?Heidi said:
Yes, they still use the barter system.Ridemonkey said:
If you need help let me know.
And the hot chicks either work in HR or Marketing/SalesMtb_Rob_FL said:
Heidi said:
I worked for Ernst & Young for several years and most interesting thing I got to count were actual breast implants. A friend of mine worked for EY in South Africa before moving to the states and got to go down into diamond mines and count raw diamonds...the drawback to this assignment was the strip search on the way out to make sure you weren't hiding a gem up your crack.
To quote a movie that I can't remember the name of, "All right, strip down, full body cavity searches for everyone!"BillT said: