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Post Info TOPIC: As bookkeepers what would you class as our Cost of Sales / Direct Expenses
PW1980


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As bookkeepers what would you class as our Cost of Sales / Direct Expenses
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Evening All,

I'm aiming to work on my business this weekend and not a clients for a change........

I'm trying to put together some reports so i can start tracking how i'm earning compaired to last year.

As fellow bookkeepers, what would you class as our Cost of Sales / Direct Expenses

So far tonight, every cost that i incur i seem to be treating as an overhead, intrested to see what others think.

Have a good weekend everyone.

 

 



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HendyPhilhendy


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Subcontractors, software licences resold to clients - to be honest most are overheads rather than cost of sales.

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MarkS


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Most accountants/bookkeeper will have nil or very low costs of sales as tend not to have costs that vary in relation to fees generated.

For myself personally all my costs are overheads eg IT costs, rent, telephone, advertising etc but at the end of the day doesnt really matter if you classify as cost of sale or overhead as the important figures in the p&l are what the sales are and what the bottom line proft is.  Everything in between is just classification.

Its not like we are buying in goods and selling them on therefore need to keep an eye on gross profit and GP% like a shop/restaurant etc.

Regards

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
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