Your Golden Inventory

Hello Golden Business Owners,

Happy New Year, Business Owners! 🥂✨ Before you fully dive into your goals for the year, there is one critical "must-do" task that we need to talk about: YEAR-END INVENTORY. 📦

If you are a business that sells physical products, you cannot skip this step if you want your taxes done correctly. Here is exactly what you need to do and why it matters:

1️⃣ The Physical Count

As of January 1st (or your specific year-end date), you need to physically count every single item you have available for sale. No guessing!

2️⃣ The "At Cost" Rule

This is where people get confused. When you value that inventory, you must do it at COST—meaning the price you paid to buy or make the item, not the price you plan to sell it for.

👉 Example: If you sell a pen for $5.00, but it only cost you $0.10 to buy it, the value on your inventory sheet is $0.10.

3️⃣ Why Does Your Accountant Need This?

We need to calculate your true profit. Here is the tax reality: You can't deduct the cost of an item as an expense until you actually sell it.

If you bought 1,000 pens last year but only sold 200, the remaining 800 are not a tax write-off yet—they are an asset sitting on your shelf. 📝

Save yourself the headache (and save on accounting fees!) by having this number ready to go.

Please put it into your client portal when you have your inventory number.

Blessings of Abundance, 

Diamond Deb