Startup questions for new business

[Maf. King]

On Wednesday 10 Nov 2004 00:30, Bill Wisse wrote:
> On Tuesday 09 November 2004 12:49, Maf. King wrote:
> > That all makes sense.  My method made it non-trivial to actually see the
> > profit made from selling the goods.  The extra COGS account will make
> > life much easier to deduce profit later on.
>
> Maf
> I don't think I would describe the COGS account as *extra*.

Hi Bill,

I meant extra in the sense of "additional to my explanation" not extra as in 
"superfluous". sorry if that caused confusion to the list.

I "sell" very few "goods" in my business, being mostly a design and service 
provision type outfit.  For me, selling usually involves disposal of 
life-expired capital assets, and is infrequent enough not to have to get the 
level of detail a business which vends as its core might need.

> To me , when in business of selling goods, it is the most essential cost
> account.
> You have straight away and at any time an insight of your Gross Profit ,
> what is the first indication what your Net Profit will (could) be.
> Of course in small businesses it may be  difficult to have an inventory
> system in force because of time and /or manpower but be in control of COGS
> is essential.
> So many things fall between wall and ship.
>
>  You all knew that of course :-)

And I have been reminded that IANAA for a reason... :-)

Cheers,
Maf.