Bookkeeping and Accounting for Military Surplus Stores

As a military surplus store owner, various tax policies may apply to your business. Some areas to consider include sales tax for retail goods, business income tax, and potentially more specific areas such as taxes on military goods. This could vary greatly depending on your location and the specifics of your operation. It's highly recommended to consult with a professional bookkeeper to ensure you're adhering to all relevant tax codes and maximizing your financial efficiency.

Conducting bookkeeping for both purchasing surplus goods and selling them in your store involves a few key steps. Here's what you need to do:

<ul><li>Firstly, record the cost of purchasing your surplus goods as an expense in the 'Cost of Goods Sold' (COGS) account. The COGS includes the direct costs attributable to the production of the goods sold in a company. This would reduce your business revenue and consequently the taxable income.</li><li> Secondly, when you sell these goods, you should record the revenue from each sale. The proceeds from the sale should increase your 'Sales' account under revenues. </li><li>Finally, jouralize the inventory changes. When you purchase or sell items, adjust your 'Inventory' account to reflect the current levels. The 'Inventory' account is a current asset account on the balance sheet. </li></ul>

Keeping accurate records for these two simple transactions can ensure your financial statements are accurate and can greatly aid in the strategic, planning decisions for your business.

Inventory accounting in a military surplus store involves some unique elements. To ensure accuracy, effectiveness, and compliance, consider the following best practices:

1. Stay Organized: Given the diversity and distinct nature of goods in a military surplus store, it's critical to stay thoroughly organized. Categorize items in a clear, conventional manner to avoid confusion.
2. Regular Inventory Audits: Regular audits are crucial in keeping track of physical inventory. Perform periodic checks to identify discrepancies and take immediate corrective action.
3. Detailed Records: Maintain scrupulous records for every item in your inventory: its procurement, selling price, quantity, etc. This creates a comprehensive history, facilitating effective decision-making in the future.
4. Use Advanced Tools: Utilize advanced accounting software designed for inventory-based businesses. These tools offer automation features that simplify tasks like updating records and calculating costs.
5. Stay Updated with Tax Laws: Various tax laws apply to inventory-based businesses. Ensure you're complying with local, state, and federal tax laws to avoid penalties.

With these practices, a military surplus store can more effectively manage its inventory accounting, save time, and ensure accuracy.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.