I conduct lab experiments over a zoom call to students, which demonstrates certain principles in physics.
I have to purchase certain things like screws, bolts, batteries, small motors etc. Nothing too expensive. Most of this stuff breaks in a few days, so definitely less than 2 year life span.
Would I class this as ‘General Purchase’?
Hello @MaxLondon
From my perspective (Not and Accountant nor Bookkeeper) these could be General Purchases or they may be classes as an Overhead.
It may be worth checking with your Accountant, as we can only give general advice.
As these are directly related to the service you are selling, I would say they are cost of sales, not overheads (which are more the admin-type costs of running a business). Exactly where you classify them is up to you but general purchase sounds fine.
Thanks for everyone’s help.
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