Xero

Nikita

Hi I am using xero. I am doing a builders books. Would waste collection , materials etc going to cost of sales or should I break down into categories ? I can set up different department codes but still not 100% on the software.

KoopaCooper

I would say that for a builder, materials are definitely COS; waste collection would probably be a separate expense, it's not a primary activity of the business but a by-product. At least that's how we always treat it when doing our clients' books.

(We've got quite a few clients in construction and renovation)