I was wondering how others are handling pottery expenses as a business. this is our second year buying material and selling. are most of you running as a cash based business and expensing all material purchases as they are purchased. and just claiming the income as its sold. depreciating equipment, etc. or do you maintain material inventory and record cost of goods sold estimating the costs of clay, glaze, electricity etc etc on each piece. last year I recorded all cash purchases as material expense but I wasn't sure if that was correct since we are technically manufacturing. anyone have advice?? I'm going to try to find a cpa but I didn't have any luck last year finding a competent one at the last minute.