Keeping track of your inventory, the time it takes to sell and the profit made on each product is essential if you want to manage your business effectively.
What counts as inventory?
Inventory is anything you buy to on-sell, including fully-completed items to sell in your store, products that you install in people’s homes or businesses or materials used to manufacture products.
Work equipment, tools or anything else used in your business don’t count. If you have a drop-shipping business where third-party suppliers ship direct to your customers, you don’t have inventory either.
Accounting for inventory
Tracking the movement and value of your inventory is essential for pricing, insurance, accurate tax returns and selling your business.
Good inventory tracking can also help you:
Start accounting for inventory now
To manage your inventory effectively, you need to track how much you have, how much it costs and how much you’re selling it for. You also need to factor in discounts, transport and storage costs, damage and write-offs.It can get pretty complex – so you might want to get help from people who have done it all before.
Want to build a better understanding of your inventory? Get expert help from our accounting team.
Your Outside Team
Need a bit of assistance with your
business? Contact an Outside Accounting team member today and learn more about
our fixed fees. You won’t regret it.
Aside from business consultation, we
are business accountants Wellington
who offer accounting, bookkeeping, payroll services designed to
help you achieve greater financial success.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a
call to know more about your needs. We will explain to you how we can improve
your business.
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
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