One of the most important aspects of ecommerce accounting
Inventory and COGS Accounting Services
Tier 1
- Inventory and cost of goods sold process management and synchronization
- Document tracking and organization
- Basic monthly cost of goods sold reporting (income statement)
Tier 2
- Inventory and cost of goods sold process management and synchronization
- Document tracking and organization
- Basic monthly cost of goods sold reporting (income statement)
- Customized cost of goods sold summary report
Add-Ons
- Consultation and training to determine a landed cost of goods sold for each product
- Keeping product cost catalog up-to-date
- Truing up balance sheet accounts based on actual inventory valuations
- Tracking inventory movement unrelated to sales: defectives, donations, disposals, returns, replacements (warranties), refurbished products
Why you need better COGS accounting
Some of most common ecommerce accounting mistakes happen within COGS accounting. Poor COGS gives business owners a skewed gross profit margin. As a result, business owners make misinformed decisions. This can really hurt, or even destroy, your business. So, it’s time to get your COGS under control.
Are you calculating an accurate cost per SKU?
The first step in getting your COGS under control is calculating an accurate cost per SKU. Are you including all costs associated with getting your product to your door (landed cost calculation)? This calculation can get complicated, and time-consuming, with the more SKU’s you have to handle.
Are you recording COGS at the right time?
Probably the most common mistake we see is companies that record COGS when they purchase inventory. Click here to read about the implications of this mistake. COGS should only be recorded in the month that associated product is sold.
