No matter how accurate you think you have entered and tracked information in your Boulevard software, the government wants you to count your inventory anyway. Now is the time to schedule a block of time to take the physical count. Main Street Software staff recommend the following steps:
- Print the Inventory Worksheet by Category (filtered for Section 1 only).
- Use this worksheet to take your physical count. Write your actual quantities in the column labeled Actual.
- When your physical count is complete, highlight the items where the quantity you wrote is different from what Boulevard thinks you have.
- Edit the physical count in your program for these items.
- Print the Inventory Listing by Category (filtered for Section 1 only).
Voila! Keep this report handy, as it is necessary to complete your taxes. Because Boulevard’s inventory is ‘live’ all the time, you cannot recreate this report down the road.
References:
US: MK Tax Essentials 2008, p. 6
CA: MK Legal Ease, p. 5, section IV; CRA Income Tax Act, Inventory Valuation, NO: IT-473R, Paragraph 2 Determination of Quantities.
UK: HM Revenue & Customs website, Record keeping (self-employed): http://www.hmrc.gov.uk/sa/rec-keep-self-emp.htm#3
AU: Australian Taxation Office, Record keeping for small business, NAT 3029-07.2009, p. 16.
