Page 54 - Keeping Business Records

Inventory (2/6)

Inventory is any item you buy and resell to
customers. If you are a manufacturer or
producer, this includes the cost of all raw
materials or parts purchased for
Gross
Receipts. manufacture into finished products. Your
supporting documents should show the
amount paid and that the amount was for
Assets. Inventory. inventory.

Documents reporting the cost of inventory
include the following.
Types of • Canceled checks.
Records • Cash register tape receipts.
Employment Expenses.
Taxes. • Credit card sales slips.
• Invoices.
Travel,
Transport,
Entertainment These records will help you determine the
& Gift
Expenses. value of your inventory at the end of the
year. See Publication 538 for information on
methods for valuing inventory.

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