Cost of Goods Sold question

All of your costs associated with selling the websites could go to COGS.

If you are going to use COGS, match up the costs with the revenue. In other words, if you invoice a customer in one month, be sure to record your vendor bill for that customer in that same month.

COGS is just that - cost of goods *sold.* If you haven't sold something for that cost within the same accounting period, then don't track it as COGS, track it as an expense.

It's important to match up the costs with the revenue, because it ensures that the gross margin will be accurate. And the whole reason for COGS is to get an accurate gross margin. My opinion is to only use COGS if an accurate gross margin is important to your business management.

This is because posting to COGS from the Expenses tab, while assigning a customer:job, causes problems. Here's something I wrote that explains what happens when people do this. It's a list of things I wish were different about QB, so after clicking the link, scroll down to #7:

Thanks. I think it's time to get a CPA...

" snipped-for-privacy@jenniferthieme.com" wrote in news: snipped-for-privacy@t12g2000prg.googlegroups.com:

Or take Bookkeeping 101 at your local junior college. Best $50 you'll spend.

So do I.

And, actually rather than Bookkeeping 101, may be more beneficial to take the small business class that wraps the bookkeeping info around the use of QB. Many community colleges have such courses more specifically geared towards the "non-traditional" student whereas the actual "Bookkeeping 101" class may be geared more towards the continuing student as a prerequisite transfer credit.

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Or, post the question on alt.comp.software.financial.quickbooks!

Of course, there may not be any experts available to answer these kind of questions.