Hello, I’m in the process of opening a vintage shop on Etsy and am trying to identify the correct way to inventory existing items I’ve purchased. Purchased items are from 2017 and on…yes, slow start for me due to some unexpected personal issues. That being said, I’m all in now but want to be sure I go about it correctly. Another shop owner recommended I use my business account to repurchase the items from myself individually and create an invoice to document the transaction for inventory tax purposes later. Is this accurate or is there a better option to go by?
Any input is appreciated. Thank you.
You should be able to record the existing inventory that you have onhand. While I’m not familiar with Etsy, I’m sure there has to be a way to establish your inventory cost and quantities that you previously purchased. You may want to contact their support team to see if they can assist you.
If you are trying to establish inventory in QuickBooks, you can enter your existing quantity and the cost when you create a new item. Below is a video tutorial on how to do this: https://fitsmallbusiness.com/set-up-products-and-services-list-quickbooks-online/.
Best of luck,
Crystalynn Shelton, CPA