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How Do I Track My Inventory in GoDaddy Bookkeeping?

Christie @ GD Bookkeeping
posted this on August 12, 2010, 11:46 AM

GoDaddy Bookkeeping doesn't handle starting/ending inventory, but we have a pretty good workaround for you.  

As the name suggests, you should only include the Cost of Goods (COG) associated with goods that have been sold, not goods that are in inventory waiting to be sold. 

Here is a simple example:
- You spent $1,000 in materials during 2012 year to make 100 widgets (originally categorized as Cost of Goods Sold)
- You sold 75 widgets this year
- You have 25 widgets left unsold (or material to make 25 widgets) at the end of the year
- Only $750 should be entered as COGS for your taxes ($10 per widget times 75 widgets)
- To "move" the remaining $250 from 2012 to 2013 enter -$250 COGS on 12/31/2012 and then +$250 COGS on 1/1/2013
- In the description field you can include, "adjustment for ending inventory" and "adjustment for beginning inventory"

*in this example your starting inventory is zero.


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