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In which product category (e.g. car shampoo) should I enter this?

LP
17/09/2022
Question

Dear Sir/Madam,

I recently started a car detailing company. In the beginning, I purchased a lot of products and machines and entered them as investments, but now I regularly buy new coatings or car shampoos. These are things that are used by the services I offer to my customers, but they run out quickly and need to be reordered.

So I’m wondering which category I should enter these items under, as I can’t imagine having to write them off in a few years’ time when they only last a few weeks.

Thanks in advance!

Kind regards,

Lowie Piro
Blingboost

Shouldn't you record it as trade goods? You use it for your customers, you sell it to customers, it leaves your company after you sold it to customers... That seems to me to fall within the category of "goods".

Certainly not an investment, as the amount would be too limited for that, wouldn't it?

Trade goods indeed ;)

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You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.

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