If you take goods from your business for your private use, make sure you accurately record this in your stock on hand. At Accorti we are business tax specialists and are here to answer your questions.
Is it Ok to take Stock?
Accessing your trading stock for private use is fine from a tax perspective, but you need to account for the stock correctly:
- each time you use it (as you would if you sold it)
- at year’s end.
If you don’t adjust the actual cost of goods sold to reflect the goods you used for private consumption, you could be incorrectly claiming expenses you’re not entitled to.
A good plan is to set up regular reconciliation processes to help you keep track of each time you take stock for private use.
Keep a record which shows:
- the date
- a description of what was taken
- the reason stock was taken
- the cost or market value of the item (excluding GST).
At the end of the financial year, any goods taken for your own use should not be accounted for as stock on hand.
We can help
At Accorti we are here to help you build a better future. We are experienced in assisting with all your tax needs to ensure you pay no more tax than required. If you would like to discuss further or need any assistance, please contact us now. We work with clients all over Australia and have offices in Brisbane and the Gold Coast.