Finimpact

Frequently Asked Questions(FAQ)

Are supplies inventory or equipment?
Supplies and inventory are more closely related but are also separate things. Supplies are typically used to run daily operations and can help create inventory. Inventory is the parts that will then become the end product you sell. Equipment is also separate, as it’s used in conjunction with supplies to create the inventory.
Is a desk considered supplies or equipment?
Desks are often considered equipment since they can be used for more than a year and don’t always come cheap. Desks are a necessity that can help you create the product you’re selling, whether that’s just thinking up the idea or physically creating it.
What is the difference between equipment and accessories?
Equipment and accessories can be used in tandem with each other. Equipment is the machine or component that creates your product, accessories can be added to the equipment to enhance it or make it easier to use.
What are the differences between supplies and inventory?

Simply put: supplies help you run daily operations while inventory becomes the product you’re selling. So, for example, a bakery uses supplies like paper and ink to print out recipes and signage for their business, but their inventory would be the flour, sugar, yeast, and anything else used to create the baked goods.

What IRS forms do you file for equipment and supplies deductions?

The main form you’ll fill out to report some equipment and supplies is Schedule C. Business owners report their tax-deductible income like supplies, car and truck expenses, and other business expenses.  

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

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