Query on how to record stock and money put into the business

[sittinginthesun]

Hi all, I wonder if someone could be kind enough to give me some advice please. I was thinking of getting an accountant but do not have any money. I do everything myself and use Sage Instant Accounting and have no issue with this but I am not sure what I do about these 2 things - stock and money put into the business - so I thought I would ask here first.

I am self employed and run an online business, I keep items in stock as well as buying goods in as people order them on Special Order.

Things are pretty terrible to be honest, I have lots of stock I have ordered in as we have to pre-order anything up to a year in advance - but it is not selling - needless to say I have thousands of pounds of stock sitting around, around 10k I reckon.

The other thing is, to date, I have put around 20k into my business. I am not sure what to do about this figure and when doing self assessments I have left it. Without these figures I have not earned enough to pay tax anyway and just records sales/expenses/COS, and I know I am never going to get the money back that I have put in but I am continually spending but not gaining anything. I do not take anything from the business, I am putting in but nothing comes out. I have had the odd £100 out of the business (and it really is that, I've just £200 in the last 6 months) but I do not know where I go from here.

Can you please tell me how and where I record the above figures on the self assessment forms please? Do they carry forward each year or do I simply make an adjustment as the amount change?

I just feel like I am stuck with this stock and business and I am selling things at a loss just to clear it, I have around £400 a month in expenses (card fees, web fees, internet, packaging etc..) anda lot of this comes out of our own money. If I close up shop I'll be stuck with 10k+ of stock I can do nothing with.

Does the amount of stock offset the amount of money I have put in (ie. If I have put 20k in and have 10k worth of stock, does this mean I have a 10k loss?).

I do need to see someone but do not have the money right now, it;s going to be a few hundred £ and I simply do not have that amount of money. If someone can offer some advice I'd be most grateful, I just feel like I am digging and even bigger hole for myself and I've no ladder to get out. I cannot sell it, nor can I close it but the stuff is not selling. To top that off a big company selling the same has just opened aorund the corner and I am told 'they have loads of money to put into it'. I do not buy anything unless I have the money to pay for it, I have not taken out any loans, just a small amount on the credit card because of this current situation.

Thanks for any help you can offer me.

[pawncob]

Firstly you need to understand book-keeping. This may help:
http://tilz.tearfund.org/Publications/Footsteps+11-20/Footsteps+11/Basic+book-keeping+-+a+practical+example.htm