Products and Services
Please help I'm struggling and totally new to bookkeeping. We own a small engine repair shop where customers pay before they get their equipment back, so I do sales receipts. My husband is old fashioned and writes all his invoices by hand first in an invoice book and then I transfer them to sales receipts! A friend who prepares taxes told me to show the labour/hours as income account "service fee/income" and our collection and delivery fee as "shipping and delivery income" and our parts are in a COGS account. But in my Profit and Loss report it is showing all the bank deposits as sales and then a line for hours and a line for collection and delivery making us show more income than we have. Which accounts should labour/hours and collection and delivery be put in please when I am doing the sales receipt and should the parts be in COGS?