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giving gifts from my business

Forum|Forum|4 years ago
December 23, 2021
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I have a woodworking business and I made a couple of items that I gave away as gifts. I was wondering how I would account for these since it did use up some of my inventory that could have been used for products that could have been sold. If possible how would I record them in Quickbooks Self employed since I know that differs from the other Quickbooks sometimes.

Thank you

Mike

QuickBooks Self-Employed

Best answer by KimMcCPA

For personal gifts that use business inventory, here's the accounting, regardless of what platform is used:

Receivable from owner XX (increase of an asset)

Inventory XX (decrease of an asset)

When you replenish that inventory, use personal funds, and reverse the transaction.

For personal gifts that use business inventory, here's the accounting, regardless of what platform is used:

Receivable from owner XX (increase of an asset)

Inventory XX (decrease of an asset)

When you replenish that inventory, use personal funds, and reverse the transaction.

Thank you for the help.