Inventory Accounting
We track inventory values and integrate them with your monthly books. Stock levels, cost of goods sold, and valuations are maintained so your financials reflect what you actually have on hand.
The Gap
Most small businesses know roughly what they have in stock. But knowing roughly and knowing exactly are two different things when it comes to your books. Inventory accounting connects what is sitting on your shelves to what shows up in your financial statements.
We track stock quantities, assign values, and make sure cost of goods sold flows correctly through your profit and loss statement. When you buy materials or products, they hit inventory first and then move to COGS when sold. This sounds simple but most small business accounting skips this step entirely and just expenses purchases as they happen.
Stock Tracking
Stock Tracking
We maintain accurate records of what you have on hand and what it is worth. As products come in and go out, the books reflect those movements. Quantities and values stay current so you know what you are holding at any point during the month or year.
Cost of Goods Sold
Cost of Goods Sold
COGS is the direct cost of what you sell. When inventory is tracked properly, this number is accurate and your gross margin is real. When it is not, you are guessing at profitability and the guess is probably wrong.
The Blind Spot
Your gross profit margin is revenue minus cost of goods sold. If COGS is wrong, the margin is wrong. And if the margin is wrong, every pricing decision you make is based on bad information. You might be selling products at a loss and not realize it until the year-end financials come back from your accountant.
Inventory also affects your tax liability directly. The value of what you are holding at year-end determines your taxable income for that year. Get it wrong and you either overpay taxes or underpay and face problems later. Neither outcome is something you want to deal with.
Margin Mystery
Margin Mystery
Many business owners look at their P&L and cannot understand why profits are thin despite strong sales. Often the answer is hiding in the cost of goods sold line. If you are not tracking inventory properly, that number is fiction and so is everything below it on the statement.
Tax Exposure
Tax Exposure
Inventory valuation directly affects taxable income. If you overstate ending inventory, you understate COGS and overpay taxes. If you understate it, you underpay taxes now but create a problem for next year or the next audit when the numbers do not reconcile.
The Clarity
Your books show what you actually have on hand and what it cost to acquire. Cost of goods sold reflects reality instead of an estimate. Your gross margin becomes a number you can trust and use when setting prices or evaluating product lines.
Purchasing gets smarter because you know what is sitting, what is moving, and what has been there too long. You stop over-ordering products that are not selling. You stop running out of things that move fast. The inventory line on your balance sheet becomes a meaningful number instead of a placeholder.
Trustworthy Numbers
Trustworthy Numbers
Financial statements that reflect what is actually happening in your business. Your accountant at tax time gets accurate inventory valuations without the December scramble. Pricing decisions are based on real margins rather than gut feelings about what things cost.
Informed Purchasing
Informed Purchasing
You see what is turning over and what is collecting dust. You know when to reorder and how much to buy. Dead stock becomes visible before it becomes a write-off. Cash stops getting tied up in products nobody is buying.
Greater Boston's Trusted Bookkeeping Partner
The Next Step:
A Short Conversation
We'll ask a few questions, figure out what you need, and give you a straightforward quote.