WHY KNOWING THE VALUE OF YOUR STOCK IS IMPORTANT FOR TAX

Wondering why you need to know the value of your stock for accounts and tax purposes? In this video Dan talks you through why it’s important.
Topics include:
Why knowing the value of your stock is important
Why stock is important for tax
The affect of stock on hand on your profits
The affect of stock on hand on your balance sheet
Stock in accounting
Do you need a stock take
… and more!
If you have any questions on this, please comment below.
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#accounting #businessaccounting #knowyournumbers #balancesheet #stock

[@geordiegirlltd9282]

How do you calculate the stock if you provide a SERVICE which uses stock to actually MAKE something- eg liquids and powders which you mix together and all cost different amounts- to perform a nail treatment for a client in a salon- rather than an object that is a set cost to buy ...but a very variable stock left at the end which depreciates in value considerably if I sold the remaining on Facebook as I couldn't sell it professionally? Really trying to do my own micro entity accounts myself.

[@HeelanAssociates]

Cost is the lower value of
The value you’d get if you had a sell it (‘realisable value’)
Or
What you paid for it.
So you count up what you have work out what it cost or what it would sell for, take the lower figure.
You are only interested in the product.

[@geordiegirlltd9282]

@@HeelanAssociates thank you 😊

[@lesterrobinson3169]

Whoops check your title .....😉

[@HeelanAssociates]

Dunno what you mean? 😜 (and thanks!)