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Discussion in 'Business Fundamentals' started by valleyviewlawns, Mar 3, 2015.

  1. valleyviewlawns

    valleyviewlawns Member
    from Montana
    Messages: 90

    Does anyone track their ice-melt, sand, and liquid de-icers as inventory for bookkeeping purposes? Or just an expense like fuel, snow shovels, etc.?
  2. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 6,709

    If it's a material/expense I track it, by doing so I understand operating cost and gives an idea of how much you need for the up coming season season. Knowing salt/melt usage you can order pre season and possibly save some money by doing so depending on your supplier.
  3. seville009

    seville009 Senior Member
    from CNY
    Messages: 689

    It's not really inventory; it's more of a supply item since you are consuming it as part of the job. Technically you would treat it as an asset at your year end, but unless it's a material figure (ie: over $1,000) , it shouldn't be an issue to expense it.

    A good example is the gas left in your truck tank at year end; you would not treat that as inventory.
  4. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    We buy our bulk salt and liquid from a supplier so we rarely have anything left at the end of the year, in fact zero bulk salt and I try to empty out our liquid storage tank the last couple storms. If we had any measurable amounts left I would probably still expense it out. I don't see how something like salt can be an asset or inventory other than for your own knowledge.
  5. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 7,902

    As a expense like gas, oil, insurance.
    I don't sell my customer a ton of salt.
    I sell what a ton of salt does.
  6. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    What he said.
  7. JimMarshall

    JimMarshall Senior Member
    from NW PA
    Messages: 785

    If it's a direct cost to the service you are performing ie a "raw material" wouldn't that make it COGS?