Accounting & Tax Solutions for Retail & Wholesale Businesses

The two most common inventory valuation methods are FIFO (First In, First Out) and weighted average cost. The method you choose affects your reported COGS and therefore your taxable income — especially during periods of rising or falling product costs. Once you select a method, IRS approval is required to change it. We help you choose the right method from the start and maintain accurate inventory records throughout the year.

Deductible expenses include the cost of goods sold, rent for retail or warehouse space, employee wages, utilities, insurance, packaging and shipping supplies, marketing costs, POS system and software fees, and vehicle expenses for deliveries. Equipment and shelving may qualify for Section 179 or bonus depreciation for an immediate full deduction. We ensure every legitimate business expense is captured and properly recorded.

Both in-store and online sales may be subject to sales tax depending on where your customers are located and whether you have nexus in that state. Brick-and-mortar stores must collect sales tax in their home state. Online sales trigger nexus — and therefore tax obligations — once you exceed economic thresholds in other states (typically $100,000 in sales or 200 transactions). We manage your full sales tax compliance across all channels and states.