Thank you so much ! And you explain in such a straightforward way - do you have any videos for sole traders offering any service- it gets so confusing 🙈 best wishes from the U.K. and new subbie x
Thanks for subscribing! :-). Are you looking for anything in particular? I use a lot of examples for our service-based folks. For example, here is one I did for pricing....ua-cam.com/video/doAKxyRa4pM/v-deo.html
@@BadassBusinessOwners just something very basic - offering services like maybe consultancy / working from home too / and travelling to bookings using vehicle and petrol and car parking - you have no idea how much i would appreciate it 🙏❤️
@@Zdlifestyle I'll see about doing a future one but here is a video I did on expenses. It will work on your business as well. There is one for Cost of Goods as well. ua-cam.com/video/pFDeAgb0gjo/v-deo.html
I can take a look at doing that. Here is another one that might help. They key to service based is accounting for those labor hours to provide the service. That is what is missed a lot of times. ua-cam.com/video/x6qdKGnWE0w/v-deo.html
I have business where the customer will pay it in 21days later. so the Income that we earn would be from previous months. My Question is what Total CoGS should I put ? is it the CoGS for the current month sales or ...?
Typically in a cash accounting (which most small businesses use, see a tax specialist for more) you account for stuff in the month they occur. So let's say you purchase the materials in Feb but don't get the money until March, the COGS would be in Feb even though the INCOME won't be until March. Think of it this way, you are using retained earnings to purchase the materials while you wait for payment. So in your business, you will always want to have money in reserves to do this unless you capture partial payments at the time of purchasing the materials. - Tammy
@@BadassBusinessOwners hi Tammy, Let say the Income on February is from the November-January Sales. the CoGS is the Cost of Product Sold in February . am I right? and also on Feb , I have purchase goods for my inventory(stock) should I write it? My Net Income become Minus so much, the story become so sad. my Question is: 1. Am I writting the PNL correctly? It seems that my business lose money a lot on february (but i notice that because I purchase the goods for future sales) . What is my -PNL telling actually? 2. If I always write down the CoGS of the Product sold in the particulary month, and I also write the Purchase of Goods , wouldn't it means I count the Product Cost twice in my Business? Appreciate your help
@@dc3811 Unless you collect partial payments up front for the jobs you do, you will probably have a loss until your sales are great enough to cover costs from past jobs. Sounds like you have a business that needs to have retained earnings to purchase goods. Typically you will have some months that have high profit to offset those that don't. For example, when the payments hit from the past jobs, they should help offset the old sales. But if you only see losses, I have a feeling you might have either a pricing issue or you have never created enough sales to offset your inventory costs. Hard to tell without looking at the business... But those are areas to check. - Tammy
Thank you Tammy for everything you put out. It's helped me a lot. I'm not all the way there but I'm trying to follow your lead on what applies to my little trucking company.
Your videos are so relaxing. I play them every month while I square up the books. They get me in the zone. Thanks! 😁
Excellent! Thank you! ❤
I cannot find the templet from this podcast. I enjoy the information you provide.
Hey there. the one I'm using is just from a normal Quickbooks. Do you use any accounting program? Tammy
Thank you so much ! And you explain in such a straightforward way - do you have any videos for sole traders offering any service- it gets so confusing 🙈 best wishes from the U.K. and new subbie x
Thanks for subscribing! :-). Are you looking for anything in particular? I use a lot of examples for our service-based folks. For example, here is one I did for pricing....ua-cam.com/video/doAKxyRa4pM/v-deo.html
@@BadassBusinessOwners just something very basic - offering services like maybe consultancy / working from home too / and travelling to bookings using vehicle and petrol and car parking - you have no idea how much i would appreciate it 🙏❤️
@@Zdlifestyle I'll see about doing a future one but here is a video I did on expenses. It will work on your business as well. There is one for Cost of Goods as well. ua-cam.com/video/pFDeAgb0gjo/v-deo.html
@@BadassBusinessOwners thank you ! And I will watch- sorry for replying later - different time zone 🙈
thank you very much, you are an awesome teacher with so much knowledge, Love from Panama Canal ❤
awe Thanks for watching! - Tammy
can you do a video on the cogs for a service business please? I have a bookkeeping and tax service business. Ty!
I can take a look at doing that. Here is another one that might help. They key to service based is accounting for those labor hours to provide the service. That is what is missed a lot of times. ua-cam.com/video/x6qdKGnWE0w/v-deo.html
Thank you Tammy.
You are so welcome
Thank you!!
You're welcome! - tammy
I have business where the customer will pay it in 21days later. so the Income that we earn would be from previous months. My Question is what Total CoGS should I put ? is it the CoGS for the current month sales or ...?
Typically in a cash accounting (which most small businesses use, see a tax specialist for more) you account for stuff in the month they occur. So let's say you purchase the materials in Feb but don't get the money until March, the COGS would be in Feb even though the INCOME won't be until March. Think of it this way, you are using retained earnings to purchase the materials while you wait for payment. So in your business, you will always want to have money in reserves to do this unless you capture partial payments at the time of purchasing the materials. - Tammy
@@BadassBusinessOwners Many Thanks for your explaination. Your videos are so practical and easy to understand. Subscribed from Indonesia . God Bless
@@BadassBusinessOwners hi Tammy, Let say the Income on February is from the November-January Sales. the CoGS is the Cost of Product Sold in February . am I right? and also on Feb , I have purchase goods for my inventory(stock) should I write it? My Net Income become Minus so much, the story become so sad. my Question is:
1. Am I writting the PNL correctly? It seems that my business lose money a lot on february (but i notice that because I purchase the goods for future sales) . What is my -PNL telling actually?
2. If I always write down the CoGS of the Product sold in the particulary month, and I also write the Purchase of Goods , wouldn't it means I count the Product Cost twice in my Business?
Appreciate your help
@@dc3811 Unless you collect partial payments up front for the jobs you do, you will probably have a loss until your sales are great enough to cover costs from past jobs. Sounds like you have a business that needs to have retained earnings to purchase goods. Typically you will have some months that have high profit to offset those that don't. For example, when the payments hit from the past jobs, they should help offset the old sales. But if you only see losses, I have a feeling you might have either a pricing issue or you have never created enough sales to offset your inventory costs. Hard to tell without looking at the business... But those are areas to check. - Tammy
@@BadassBusinessOwners Many Thanks Tammy
What Keeps You From Reviewing Your P & L Monthly?
Thank you Tammy for everything you put out. It's helped me a lot. I'm not all the way there but I'm trying to follow your lead on what applies to my little trucking company.
I'm so glad I get to be part of your journey Ruben! Each day you get better than the day before just because you are focused on it! - Tammy