Should you use Cost of Goods Sold?

Let’s say you install a dishwasher- you purchase the dishwasher and charge your customer for the dishwasher (with or without markup) along with the installation charges.

When you look at your profit and loss statement your income looks inflated and your expenses really high- not because they are but because your purchase of the dishwasher is not clearly deducted from your sell of it.

If you use cost of goods sold, your income reported before overhead expenses is much more accurate, helping you have a strong grasp of the actual expenses of doing business.

I would love to help you set this up!