Inventory Accounting
We track what comes in, what goes out, and what it costs. Your inventory records stay accurate so your financial statements reflect reality and you can make purchasing decisions based on real data.
What This Is
Walk into your stockroom and count what’s on the shelves. Now compare that to what your books say you should have. For most businesses without proper inventory tracking, those numbers don’t match. Items get sold and never recorded. Purchases come in and sit in a box. Things get damaged, returned, or simply walk out the door. The books say one thing. Reality says another.
Inventory accounting closes that gap. We track what comes in, what goes out, and what it all costs. Every purchase gets recorded at the right value. Every sale reduces the count. At any given time, you know what you have and what it’s worth. Not a rough guess. An actual number you can rely on.
The Tracking
The Tracking
We maintain running records of your inventory quantities and costs. When you buy materials or products, we record the purchase price. When you sell something, we calculate the cost of what was sold. Monthly reconciliation catches discrepancies before they compound into bigger problems.
The Valuation
The Valuation
Inventory valuation matters for your balance sheet and your taxes. We apply consistent costing methods that make sense for your business and your industry. Your financial statements reflect what your inventory is actually worth, not what you hope it’s worth.
Why It Matters
When inventory records are wrong, your profit numbers are wrong. Cost of goods sold is often the biggest expense line for businesses that sell products. If you’re guessing at that number, you’re guessing at your profit. You might think you’re making 30% margin on a product when the real margin is 15% after accounting for damage, theft, and purchase price changes you never tracked.
The problems compound when it’s time to order more stock. You don’t know what’s actually moving because your records don’t match reality. You order more of something that’s already overstocked because you can’t trust the counts. Cash gets tied up in inventory that sits for months while you run out of the things customers actually want.
The Margin Problem
The Margin Problem
Without accurate inventory costs, you can’t calculate true margins. You price based on what you think things cost, not what they actually cost. Some products lose money and you don’t know it until year-end when you wonder where the profit went. By then it’s too late to fix.
The Cash Problem
The Cash Problem
Inventory is cash sitting on shelves. If you don’t know what you have or what’s selling, you make poor purchasing decisions. Money gets locked up in slow-moving stock while you scramble to reorder fast movers. Your cash flow suffers because you’re buying the wrong things at the wrong times.
What Changes
Accurate inventory records change how you run your business. You know exactly what each product costs and what margin you’re making when it sells. You can identify which items are worth stocking and which ones just take up space. Purchasing becomes strategic instead of reactive. You stop guessing and start knowing.
Your financial statements finally reflect reality. The balance sheet shows real asset values. The income statement shows accurate cost of goods sold. When tax time comes, you have defensible numbers backed by proper records. No scrambling to reconstruct what happened. No anxiety about whether the numbers hold up.
Real Margins
Real Margins
You see true profitability by product or category. That item you thought was your best seller might have thin margins once you account for all costs. Those numbers help you make pricing decisions based on facts instead of assumptions. You stop subsidizing money-losers without knowing it.
Cleaner Books
Cleaner Books
Inventory ties directly to your financial statements. When inventory is tracked properly, your books balance. Your accountant or tax preparer gets clean numbers to work with. You stop worrying about whether the records are right because you know they are.
Northwest Arkansas's Dedicated Bookkeeping Partner
The Next Step:
A Quick Conversation
Tell us about your business and where you need help. We'll listen, ask a few questions, and give you a clear plan and honest price.
