Inventory is not tax deductable, per se. You do, however, list it on your Schedule C under "Cost of Goods Sold" and it is a legitimate business expense which goes to part of your costs of doing business. This can help offset profits.
One big thing that many in small business fail to realize that everything that you spend either promoting or conducting business, whether out of personal pocket or the business', should be recorded, receipts kept, and used as legitimate tax deductions. It often amazed me at what I could deduct during the course of my travels as I'm always promoting the business. Having a wife who is an accomplished tax professional and book keeper helps, though.
It will be advantageous to get established with someone that really knows the ropes and you'll find that to be a major asset to you financially. One caveat. Just because someone's a CPA does not mean that they are extremely well versed in all the ins & outs of the tax code. The one time someone screwed up my returns it was an accountant and I've heard the same elsewhere aside from my wife's experiences doing taxes professionally. Get referred to someone that has has good experiences with a pro.