Inventory & Cost of Goods Accounting
Clear understanding of what you have, what it costs, and where your inventory dollars go
Return HomeWhat This Service Delivers
You'll have organized records that show exactly what inventory you own, what you paid for it, and how it moves through your business. Each month brings clear reports on inventory value, cost of goods sold, and the variances that indicate where attention might be needed.
This service transforms scattered purchase records and physical count notes into structured financial information that supports confident decisions about ordering, pricing, and identifying areas where inventory processes could improve.
The Challenge You're Facing
Managing inventory means tracking hundreds or thousands of individual items, each with its own purchase price, quantity on hand, and rate of movement. When you buy from multiple suppliers at varying prices, calculating actual cost of goods becomes complicated quickly.
Physical counts reveal discrepancies between what your records say you should have and what actually sits on your shelves. Some variance is normal, but without organized tracking, you can't tell whether the differences represent typical shrinkage, data entry errors, or something requiring more attention.
Making informed purchasing decisions requires knowing your true costs and turnover rates, but pulling together that information from various systems takes time you'd rather spend on other aspects of your business.
How We Address This
Purchase Recording and Costing
We maintain detailed records of every inventory purchase, including supplier, date, items received, and costs paid. This creates an accurate foundation for calculating cost of goods sold using the method that makes most sense for your business.
Physical Count Reconciliation
When you perform physical inventory counts, we reconcile the results with your book records. This process identifies variances, tracks shrinkage patterns over time, and ensures your financial statements reflect what you actually have on hand.
Cost Analysis and Reporting
We produce reports showing inventory value by category, cost of goods sold for the period, gross profit margins, and turnover rates. These reports highlight trends and provide the data you need for pricing and purchasing decisions.
Variance Investigation Support
When significant variances appear, we help identify potential causes by reviewing purchase records, sales data, and count methodology. This collaborative investigation often reveals process improvements that reduce future discrepancies.
Working Together
Initial Setup
We start by understanding your inventory categories, typical suppliers, and how you currently track items. This conversation usually reveals opportunities to simplify data collection while maintaining the detail you need. Setup typically takes two to three weeks.
Ongoing Operations
Throughout each month, you send us purchase invoices and receiving records as they occur. We maintain your inventory accounting and remain available to answer questions about specific items or transactions. Your regular operations continue without significant changes.
Physical Count Process
When you conduct physical inventory counts, we provide count sheets organized by your storage locations and categories. After counting, we reconcile the results, calculate adjustments, and update your records to reflect actual on-hand quantities.
Monthly Reporting and Review
Each month, you receive reports showing inventory valuation, cost of goods sold, gross margins, and any significant variances. We're available to discuss the numbers and explore what they mean for your purchasing and pricing strategies.
Investment and Value
Comprehensive inventory and cost of goods accounting
What's Included
This investment provides clarity about your inventory value and product costs. The insights you gain can help identify slow-moving items, optimize order quantities, and support more accurate pricing decisions.
Our Approach and Results Framework
How We Measure Progress
Success means having reliable inventory records you can reference when making purchasing decisions. Within the first month, you'll have organized purchase history. By the second or third month, you'll see patterns in your inventory movement and begin to identify opportunities for improvement.
Typical Timeline
Most businesses see the following progression with this service:
- Weeks 1-3: Initial setup, category organization, and baseline establishment
- Month 1: First comprehensive inventory valuation and reporting
- Months 2-4: Pattern identification, process refinement, variance reduction
- Ongoing: Consistent tracking with increasingly useful trend analysis
What to Expect Realistically
This service provides organized inventory data and clear cost reporting. It won't eliminate all inventory variances or automatically optimize your purchasing, but it gives you the information needed to make those improvements yourself and track whether changes you implement are working.
Working Together With Confidence
Accurate inventory accounting requires trust between us. You're sharing detailed information about your suppliers, costs, and business patterns while relying on our work to produce numbers you'll use in important decisions.
Our Commitment
During your first three months, if you find this service isn't providing the clarity you need, let us know. We'll work together to adjust our approach or help you transition your records elsewhere without difficulty.
We build relationships with clients who stay with us for years, not contracts designed to make leaving complicated. You're welcome to discuss your specific needs before making any commitment.
Our aim is to become someone you can reach out to with inventory questions, knowing you'll receive straightforward answers and accurate records you can depend on.
Getting Started
Step One: Initial Conversation
Contact us through the form below or email [email protected]. We'll arrange a call to discuss what you sell, how many inventory items you typically carry, and what information would be most helpful for your decision making.
Step Two: Service Outline
After our conversation, we'll describe specifically what we can provide for your business. This includes the reports you'll receive, how often physical counts should occur, and what information we'll need from you regularly.
Step Three: Implementation
Once you decide to proceed, we work together to organize your inventory categories, establish baselines, and set up systems for sharing purchase information. This process adapts to how you already operate.
What Happens Next
After implementation, you'll receive your first inventory reports and we establish our regular communication pattern. Most clients find the service becomes a natural part of their monthly routine within four to six weeks.
Ready to Discuss Your Inventory Accounting Needs?
We're here to answer questions about how this service works with your specific inventory and products. Reach out to start a conversation.
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