cost of sales

Hi Jill - COS is what it says on the can, so to speak, in that it's anything you have to spend out that directly relates to the sales you make.

So, in your case, if you use print media for example, it will be the cost of paper and maybe frames you buy in if you sell these. If you do studio work it might also involve consumables that you buy in for that work.

Your cameras and other equipment will go to Fixed Assets however smaller inexpensive items such as memory cards, batteries, reflectors, flash attachments and other consumable items may also be suitable for COS. The level of "inexpensive" is subjective, business by business but, these days, I tend to say that anything under £100 for most small businesses.

Many businesses also allocate some or all of salary and sub-contractor costs to this part of the accounts. For example if you pay another professional to cover some work, this directly relates to sales and so would be a COS.

Hope that helps