E-commerce revolves around inventory - so getting your accounting right for inventory is vital! Grasping the accounting treatment of inventory is essential for e-commerce business proprietors to gain insights into profitability. Download our inventory Basics eBook to get insights into the following five need-to-know areas.
Impact On the Financials
Your accounting for Inventory can make-or-break the accuracy of your financial statements. Make sure you understand how inventory impacts both your Balance Sheet, and Profit & Loss Statement...
Tracking Inventory
How best you should be tracking for inventory, whether through a spreadsheet or an IMS software system...
Unit Cost Calculation
If your unit cost is not accurate, then your true cost of goods sold (COGS) will be incorrect; and if your COGS is incorrect, then so will your profit. Here's what should be factored into your unit cost...
Inventory-Related Expenses
Not every expense related to selling inventory should be considered a part of your unit cost and "cost of goods sold". These are the expenses that should be excluded...
Adjusting Inventory
Inventory needs to be updated to actual on a routine basis. These are some best practices for when you need to adjust inventory levels on your financials...
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