Quickbooks question.

[Oldmacdonald]

I'm setting up quickbooks for use on my other small, fairly simple farming business.

When making up categories for expenditure - growing costs, livestock expenses, packaging, machinery repair etc etc, should this be made as a category of 'Cost of Sales' or as a category of 'Expenses'

Thanks.

 

[DrWazzock]

I have defined sprays, fertilisers and seeds (which are directly associated with growing the crop) as “cost of sales”. Other indirect costs such as diesel, insurance, machinery repairs etc which can’t be identified as being solely associated with a particular field crop I have defined as “expenses”. That’s what my accountant seemed to want me to do.

 

[Oldmacdonald]

I have defined sprays, fertilisers and seeds (which are directly associated with growing the crop) as “cost of sales”. Other indirect costs such as diesel, insurance, machinery repairs etc which can’t be identified as being solely associated with a particular field crop I have defined as “expenses”. That’s what my accountant seemed to want me to do.

That's what I had, but when I ran a p and l, it only took cost of sales into gross profit.
Maybe I just haven't found a way to include a net profit line.

 

[DrWazzock]

That's what I had, but when I ran a p and l, it only took cost of sales into gross profit.
Maybe I just haven't found a way to include a net profit line.

It certainly works in mysterious ways. I’m still learning and haven’t really got to grips with that yet. I tend to leave it to the accountant!