lindasewsit Posted March 31, 2009 Report Share Posted March 31, 2009 Hi all! I am finally getting around to my taxes....yuck! I know...... I'm a procratinator! How do you do the inventory for your thread? The batting is easy, but how in the world do I tell how much thread I have left? Thanks for any help! linda Link to comment Share on other sites More sharing options...
DoryJM Posted March 31, 2009 Report Share Posted March 31, 2009 Hi Linda, I'm sure that someone here will have a better answer for you, but I didn't treat my thread or batting as inventory that had to be counted. Rather, they were treated as supplies for the business. My accountant wanted an inventory, but I explained that other than listing the thread I'd purchased, I had no way of know how much was left. And hey, don't be too hard on yourself...its not April yet! Link to comment Share on other sites More sharing options...
IBQLTN2 Posted March 31, 2009 Report Share Posted March 31, 2009 I would agree with Dory, thread should be treated as supplies not inventory, you don't outright sell your thread you use it up as a supply in the process of quilting. Now if you sold it to others that might be different. Remember anything that is inventory is also depreciated, I cannot see depreciating thread as an asset. Just from a bookkeepers point of view. Link to comment Share on other sites More sharing options...
quiltmonkey Posted March 31, 2009 Report Share Posted March 31, 2009 I use the cash basis, so I don't need to track inventory of my supplies. That was a recommendation from my CPA who does my taxes. Plus, I really don't have a huge amout of thread or supplies. I'm just little old me with a few cones and a half roll of batting that I have for personal use! Link to comment Share on other sites More sharing options...
Guest Linda S Posted March 31, 2009 Report Share Posted March 31, 2009 According to Turbo Tax (but check this to be sure) if you do under a million in sales a year, you don't need to track inventory. I put thread and batting under supplies. Linda Link to comment Share on other sites More sharing options...
Quilting Heidi Posted March 31, 2009 Report Share Posted March 31, 2009 Linda I was going to say the same thing. I don't track inventory. Here is how I explained it, my batting is my paper and my thread is my ink...sounds like office supplies now, right? I think only if you are going to sell thread and battting outside of selling them with the quilting service would probably have to do inventory. Link to comment Share on other sites More sharing options...
BethDurand Posted March 31, 2009 Report Share Posted March 31, 2009 Oh, but wouldn't we all love to do more than a million in sales every year? Link to comment Share on other sites More sharing options...
ThreadWaggle Posted March 31, 2009 Report Share Posted March 31, 2009 I know that several fabric stores here weigh their fabric. They have a formula that takes out the bolt weight and figure out how much an average yard of fabric weighs. If you really need to inventory the thread I wonder if you could do something like that. With the weight of a brand new cone and the weight of the empty cone you should be able to figure out the % left by weighing a partial cone. Of course if your situation allows you to not inventory that would be the easiest solution. Link to comment Share on other sites More sharing options...
juliagraves Posted April 1, 2009 Report Share Posted April 1, 2009 I'm not sure I agree with the comment regarding depreciating inventory - you depreciate assets (like your long-arm) because they have a life after which they wear out and need to be replaced. While Federal doesn't require you to track inventory of under $1M, my state (Maryland) DOES requires me to track inventory. I track how much my thread cost me (purchase price), and also track usage (one bobbin of Bottom Line = 200 yards, times how much 200 yards cost me). The difference is how much I have left in inventory. Good luck - Julia Link to comment Share on other sites More sharing options...
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