Inventory

We have answered your question in a video: https://youtu.be/wK1lVJ2suYc

Thank you so much for your answer. Thank you! Well done!

Hi, I have a similar problem. I buy fancy dress costumes and materials to rent out in themed boxes. However, the cost invoices are rather low, so I think it would be difficult to record them as an investment. Does that mean I have to record them as general expenses?If you rent out goods, such as bouncy castles, you do not need to declare inventory in your personal income tax return. After all, inventory is only relevant for trade goods. Things you purchase with the direct intention of selling them afterwards.

When you rent goods, they remain in your possession and do not leave your company (immediately), which means they are not trade goods. Instead, you record these purchases as an investment (if the amount is higher) or as other costs. You can do this under the cost category 'miscellaneous small purchases', but you can also create a separate cost category. For example, under the main category 'General expenses', you can create a new category called 'Purchases for rental'.

If you later decide to sell these purchases, this will still not affect your inventory!