Archives for February 2012

Remembering Ms. Guinea

Guinea Fowl are strange birds, and I had only seen them in pictures when I decided to buy 45 newly hatched chicks.  A third of them were promised as soon as they arrived.  When they were older, I gifted them until I had six remaining.  A half a dozen guinea happily grazing the yard sounded just right.

And then they were discovered by a Great Horned Owl, and within two weeks I was down to one guinea — Ms. Guinea.  She continued to out-smart the Owl for several months.  Each morning she was outside to greet me and would often sit on my home office window looking in.  Guineas can be loud, and no one came to the house without her alarm sounding.

Last week the Owl won.  Such is nature.  My Texture Tuesday project is a tribute to Ms. Guinea.

This is Kim Klassen’s texture “Felicity”.  One layer at normal 19% and one layer at soft light 100%.

Inventory – Counting Beans

Inventory — do we need to count those beans?  Yes, I know, these are peas but you get the picture.  First decision is whether or not inventory is important — to you, to the IRS or to your state.  State?  Yes, numerous states have a tax on inventory, so keep that in mind.

Some common examples of inventory include: Merchandise for sale, raw materials, work in process, finished products and supplies that become part of an item for sale.  If you’re a retail store or a manufacturer then inventory is important.  Keeping up with inventory and “valuing” inventory (if it’s determined to be important) are topics for another day.

Let’s take for example an artist, a jewelry maker.  They have all sorts of materials that go into making a piece of jewelry.  And at any given time they have materials on hand, jewelry they are working on and finished pieces of jewelry.  Do they need to worry about inventory?

When they sell a piece of jewelry, they will want to know what it cost them to make.  Yes, to price the item, they do need to know the cost of the materials and their time — does it need to be exact?  If it’s exact they aren’t going to have time for making jewelry!  But I’ll bet they all have a pretty good idea, and this is good enough.  Don’t make it more difficult than it needs to be.

Now, when it comes to tax reporting, time isn’t important, only materials.  The formula is:

Beginning inventory + purchases – ending inventory = cost of goods sold.

Chances are that inventory (and this is going to depend of $$$) isn’t going to be very important on the tax return, but here’s a sequence that shows why you need at least a general idea of your inventory and report it.   You’ve purchased a lot of materials and made a lot of jewelry, but at the end of the year you still have it.  Not reporting it as inventory would make it look like have a bigger loss than you exactly do.  So, this stuff should be reported as inventory instead of cost of goods sold.  Next year, you have all this stuff so you don’t buy any more, but hey, you sell a ton of it and hardly have anything left at the end of the year.  If you reported inventory in the first year, then it would be become your cost of goods sold and you taxable income is less.  But say you didn’t classify it as inventory the previous year and took a loss — now you have a big profit to report.  Inventory is a way of matching income and expense — it evens out the ups and downs.

Do I need to count those beans?  No, but I need to know that the bag costs around a dollar, and at year end I have half a bag left for inventory.

Love of Art Blog Party

Our Fly Tribe is hosting a Love of Art Blog Party.  It’s February, so it has to be “love”.  And it’s tax season, so I’m a bit short on time.  But yes, I believe in love — love of art, that is.

It was just a little over a year ago that I with tiny steps began this creative journey, and it has truly been a blessing.  I have had so much fun trying out different techniques, viewing all of the fantastic art out there, getting to know some absolutely wonderful artists, and just piddling.  It has truly been good for my soul, and I don’t want to ever abandon my need for the creative again.

These ATCs are ones that I made for our Fly Tribe February ATC swap.  I did a series using a photograph of my maternal grandmother.

She died at the age of thirty from cervical cancer, and I have always been drawn to this haunting photograph.  I don’t know if it’s unhappiness or sickness or maybe just the pose of the times.  But it felt good to put her on my ATCs knowing that she could be traveling as far as Australia.

There is a lot of Love of Art sharing this week.  The link at the top right takes you to more posts.  Enjoy and do your soul good.