We have been working on our quickbooks for the 2010 tax season. Because we are currently the manufacturer, there are some complicated issues for keeping track of inventory. I always thought that inventory was what you have on hand ready to sell. Not so when you're the manufacturer. Inventory consist of the raw materials to create your product plus finished product for sale. We found out that our version of quickbooks (Pro) isn't really set up for this type of business and makes things more complicated to keep track of. Apparently if you're going to do manufacturing and whole sale, you should use QuickBooks Premier.
We'll use what we have for now, but probably in 2012, we'll upgrade if we're still doing the actual production. You can save yourself a lot of work if when you buy your materials, if you break it down to how many items that batch of raw materials will make. As an example, you buy 100 pounds of flotsam and jetsam for $100 to make your patented Goober Ball. It takes one pound of flotsam and jetsam to make a Goober Ball. Your materials cost is $1 of raw material for each Goober Ball. Now we all know that Goober Balls sell very well and are highly profitable. You'll make a fortune.
Trust me, you'll need this information when you start your setup for your company.
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