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TonySaba's avatar
TonySaba
User
3 years ago
Solved

allocation of certain transactions

I'm new to this whole accounting thing and was therefore wondering if someone can help me out here.

I own a childcare centre, and i purchase supplies from coles and Bunnings almost on weekly basis. I was therefore wondering under what category are these supplies meant to be??

Thanks

  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi TonySaba 

     

    Thanks for your post and welcome to the Community Forum.

     

    We're not permitted to advise on the accounts you should allocate purchases to, you would need to speak to your accountant about that.

     

    I can give you some  information on the difference between Expense and Cost of Sales accounts though:

    Cost of Sales - purchases directly associated with providing your service or sale

    Expenses - expenses related to running your business eg, wages, utilities, accounting software

     

    Please don't hesitate to post again if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi TonySaba 

     

    Thanks for your post and welcome to the Community Forum.

     

    We're not permitted to advise on the accounts you should allocate purchases to, you would need to speak to your accountant about that.

     

    I can give you some  information on the difference between Expense and Cost of Sales accounts though:

    Cost of Sales - purchases directly associated with providing your service or sale

    Expenses - expenses related to running your business eg, wages, utilities, accounting software

     

    Please don't hesitate to post again if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.