Inventory Value and the Balance Sheet

Two reports show what your business has on a particular day. Inventory value is what your unsold stock cost you. The balance sheet adds up everything the business has and owes, to show what it's worth. Your accountant needs both for December 31, and RelistKit fills in most of the numbers for you. Both reports are part of the Pro plan.

Inventory value

1. Click Reports in the top menu.
2. Click the Inventory value tab.
3. From the Day dropdown, choose Today, December 31 of last year, or Choose a day to pick another.

At the top, you'll see:

• At cost: what the stock you had on that day cost you. This is the figure your accountant needs.
• At today's list prices: what the same stock is listed for now.
• No cost recorded: items with no cost entered. They count as $0 until you add their cost.

"At cost" means what you paid, not what you hope to sell it for. The CRA values a reseller's stock this way. The figure on December 31 is your closing inventory for the year, and it becomes your opening inventory for the next.

Each item counts at its total cost: what you bought it for, the tax you can't claim back, and what it took to get it ready (see How RelistKit Counts Your Costs). Drafts count too. Items you've sold since that day still count, because you had them on it.

Some things aren't your stock, so they're left out:

• your consignors' items
• things from your own closet
• archived items

Below, How long it's been on hand shows how much of your stock is new and how much has been sitting:

Click CSV or Excel to download a list of every item with its cost, for your accountant.

The balance sheet

A balance sheet shows, on one day:

• What the business has: money in your accounts, money waiting on marketplaces, your stock and your equipment.
• What it owes: credit card balances, loans and, if you're registered, GST/HST you haven't paid yet.
• Equity: what it has, less what it owes. It's what the business is worth to you.

1. Click Reports in the top menu.
2. Click the Balance sheet tab.
3. Choose the day from the Day dropdown.

RelistKit fills in:

• Stock on hand at cost, the same figure as Inventory value.
• Equipment at cost, from your equipment list.
• GST/HST owing, if you're registered. You can change it if you've already paid some.

You type the rest, because RelistKit doesn't connect to your bank:

• Bank and payment accounts: each account the business keeps money in, like chequing or PayPal, with its balance on the day. Click Add an account for another.
• Money waiting on Poshmark (and on eBay): sales a marketplace has paid you that you haven't moved to your bank yet.
• Credit cards and Loans: what was owing on the day.

To keep your figures, click Save the figures for that day, at the bottom of the sheet. Saved days are listed under Saved sheets, with how your equity changed from one to the next. Click a date there to open it again.

Save your December 31 balance sheet

Your accountant uses what the business owed on December 31 for your tax return (line 9931 of the T2125), and the Year-end report checks that it's saved.

1. On or after December 31, open Reports → Balance sheet.
2. From the Day dropdown, choose December 31 of the year.
3. Enter your account balances and what you owed on cards and loans. If you owed nothing on a card, enter 0.
4. Click Save the figures for Dec 31, followed by the year.

Common questions

Why does December 31 include items I've sold since?

Because you still had them on that day. The cost is what they cost you. Only the list prices are today's.

My consigned items aren't counted.

That's on purpose. Your consignors' items belong to them, not your business, so they aren't your stock.

An item's cost is higher than what I paid.

RelistKit adds the sales tax you paid and can't claim back, and any costs to get it ready. See How RelistKit Counts Your Costs.

My saved balance sheet changed.

The figures you typed never change. Stock, equipment and GST/HST owing are worked out fresh each time you open a day, so a cost you add later shows up on earlier days too.

Where do I put my Depop money?

Depop pays into PayPal, so include it in your PayPal balance under Bank and payment accounts.

Is equity the same as profit?

No. Equity is what the business is worth on one day. Profit is what it earned over a period. See The Profit and Loss.