Inventory Accounting Methods: A Small Business Guide
You're probably here because your inventory numbers don't seem to match your gut. Sales are moving. Cash may be coming in. But your profit looks oddly high one month, disappointingly low the next, and your year-end inventory value doesn't feel intuitive. That's a common small business problem, especially when purchase costs change throughout the year. […]
How to Calculate Cost of Goods Sold for Your Business
Figuring out your Cost of Goods Sold (COGS) is one of the most fundamental parts of business accounting. The classic formula is a great starting point: Beginning Inventory + Purchases – Ending Inventory. This simple calculation tells you the direct cost of the actual products you sold during a certain time, giving you a sharp, […]