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sample inventory and expense reports

By Edited Nov 13, 2013 0 0

In looking for either sample inventory reports or sample expense reports you will likely come across the two to be intertwined and interlinked together. The two being inventory report and expense report. They can be said to be treated differently in terms of accounting and auditing, in that inventory reports goes towards the balance sheets and expense reports actually goes into the income statement accounts, especially useful when trying to claw back taxes.

Sample inventories could involve the biggest current asset of the business' product line or any of its significant items that is meant for sale. In essence, sample inventory could involve stock for use in selling services or for manufacturing products for others to buy. For example, in clothing retail business, these would be the pants and tops and jackets that are obtained from a wholesaler or perhaps supplier source as another possibility or example. If you look at your hired accountant's balance sheet, you would see the items reflected as a term called merchandise inventory, they are actually the items that you resold or manufactured to be sold.

As for expenses, they are another ball game all together. For example for the current asset of those products that were mentioned as inventory above, the cost of procuring those, either through a wholesaler or through costs of production can be written off as expenses. This expense can under additional calculations be transformed into costs of good and added into your sample expense reports. Some special forms of expenses include pre paid expenses which is rather self explanatory. The technical details is best left to your accountant, but not to your auditor!

Other un-seeming items can also go into costs and expenditure, things such as insurance premiums for theft or fire coverage, would go into your overall expense reports. As your business grows, so will your inventory as well as your expenses increase along with it. You'll have to stay on top of your cash flow and keep tabs just in case it ends up getting audited. You could along the way try to instruct your people to compare it with the accompanied sample inventory reports to check for inconsistencies

Another way to interpret expenses would be to look at them as the sum of the cost of the product added to overhead costs which involve things like promotions so as to sell the product, or rental for shop space, as well as tax and as afore mentioned insurance. Take heed that further things like debit costs, salary and commissions, as well as transport will further eat into profits as they are added as expenses. Once sold it will change from an asset (or liability depending) and move into another area on your statement accounts.

The relationship between the two can be said to be that of: "so as to have an inventory one must inevitably incur expenses". Certain tools that can be used to identify discrepancies is to compare the Balance Sheet as well as the income Statements and look at their revenue loss, as well as pay careful attention to their debit balances. If it does not match up then it might signal that there is something wrong, although it might be attributable to a careless typo here or there. But there is good reason to take extra care.

This is because if the auditor is unable to step in and pinpoint the issue, things might get more serious if it is covered up in future then that might signal expensive legal costs for the company. It is thus best for everyone to work together.



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