Hi
First time post for ages!
I've set up a new eCommerce Plan B business & signed up for Quick Books to track my accounts (although this isn't specific to Quick Books).
My question is 100% as a newbie to this type of business, so please excuse my naivety.
I need to buy a lot of stock, and will continue to do so to keep my website relevant. What has surprised me is that the cost of goods is showing as a loss in my accounts.
For example - Items sold this month = £500, Cost of Stock this month = £750. Quick Books shows this as trading at a £250 loss, even though the stock of £750 is worth at least £1250 in resale.
Is this normal for this type of business?
First time post for ages!
I've set up a new eCommerce Plan B business & signed up for Quick Books to track my accounts (although this isn't specific to Quick Books).
My question is 100% as a newbie to this type of business, so please excuse my naivety.
I need to buy a lot of stock, and will continue to do so to keep my website relevant. What has surprised me is that the cost of goods is showing as a loss in my accounts.
For example - Items sold this month = £500, Cost of Stock this month = £750. Quick Books shows this as trading at a £250 loss, even though the stock of £750 is worth at least £1250 in resale.
Is this normal for this type of business?
Comment