Hey guys I have a few questions regarding COGS vs Expenses. I know this is a question for a CPA but I currently don’t have one, being such a small business, I was hoping to pick your guys brains. Obviously things like QuickBooks your CRM, insurance, phones etc. are all categorized as expenses however when it comes to material are those categorized as cost of goods sold or expenses? For example ( not actual numbers just an example) if I have 3 jobs per week and I use 3 gallons of bleach per job that’s 9 gallons all week. That’s 36 gallons a month if I buy 50 gallons per month to handle my jobs and have some extra on the shelf just in case. Do I count the 36 as COGS and the other 14 as expenses? Or am I completely wrong? The reason I’m confused is I thought costs of goods sold was only what you spent to do that particular job. But as you can see whether it’s bleach or surfactant you could end up buying and storing more than you would use per month/year. Now the same would apply for equipment if you have a roof job and you purchase a 12v system is that considered a COGS or expense? I have a feeling I’m completely wrong with my examples hopefully someone can give me some insight.