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Topic: inventory accounting

Empowering accountants to help their customers with better inventory management

Last week, we were at the Accounting Business Expo in Sydney getting to know all the accountants and bookkeepers. In the fast-paced two days, we talked to many accountants and bookkeepers who wanted to help their clients who were struggling with inventory management — but didn’t know how they could help. How much inventory a […] ... Read More

  March 26, 2019     

Inventory Accounting: When Should You Use the Weighted Average Cost?

Accounting cost methods are used to control how a businesses inventory expenses appear on the company books. The weighted average is an accounting cost method used to value a company’s inventory by applying the average cost of on-hand inventory to each item of inventory stock. This means that both the cost of goods sold (COGS) […] ... Read More

  February 6, 2019     

Improve Your Financial Health with Better Inventory Control

There is a positive correlation between the quality of a company’s inventory control and its financial performance. Many financial ratios incorporate inventory values to measure aspects of a business’ financial health. For example: Inventory turnover ratio helps a business to plan and to more accurately forecast the cash necessary to reinvest i ... Read More

  February 5, 2019     

The Effects of Using the Weighted Average Cost Method

The weighted average cost method is an accounting approach to inventory valuation, it is used to determine the cost of goods sold (COGS) and the ending inventory stock. Weighted average accounting assumes that all units are valued at a weighted average cost per unit, and it applies this calculated average to the COGS in addition […] ... Read More

  December 18, 2018     

The Weighted Average Cost Method of Inventory Valuation

The weighted average cost method in accounting is one of three approaches of valuing your businesses inventory stock and determines the average cost of all inventory items based on the individual costs and the quantity of each item held in stock. Businesses use the weighted average to determine the amount that goes into the inventory […] ... Read More

  December 17, 2018     

Should You Be Using SDE Analysis to Classify Your Inventory?

When you’re a business owner, trying to run a successful warehouse can be a big job. Inventory levels can fluctuate with demand and keeping track of everything without the right inventory control can be a challenge. Look to implement a periodic inventory analysis to enhance your inventory control practices. It will give you a better […] ... Read More

  December 10, 2018     

Understanding FSN Analysis

Finding the optimum level of inventory stock is no easy feat. As a business owner, you should look to inventory analysis as a guide. There are a variety of analytics you can run to better understand your inventory stock. The type of analysis will differ depending on what information you want to gather and what […] ... Read More

  December 8, 2018     

The Relationship Between Cashflow and Inventory Control

How you manage your inventory will directly impact the cashflow of your small business and when you fail to effectively manage stock you are putting your business at a disadvantage. Why? Because your cash is tied up in that very stock. The correlation between inventory control and cashflow is largely determined by the levels of […] ... Read More

  December 3, 2018     

Don’t Let Inventory Discrepancies Affect Your Accounting

A reliable stock taking procedure allows businesses to know its inventory count and value, not only informing decision-makers and driving operations but also ensuring accurate information is available to accountants, auditors and financial controllers who prepare annual reports, balance sheets and essential statements of earnings. Identifying discr ... Read More

  October 13, 2018     

Don’t Overlook These Differences Between Inventory and Fixed Assets

Especially at the beginning for small businesses, it’s easy to get inventory and fixed assets confused. Inventory and fixed assets are sometimes treated as assets on a business’s balance sheet, though not all assets are inventory. Knowing the essential differences between inventory and fixed assets helps for better tracking, as well as to h ... Read More

  September 14, 2018     

The Essential Difference Between Fixed Assets and Inventory Stock

Company assets are all the resources owned by the business, such as cash, receivables, inventory stock, investments, land, buildings and equipment. It’s important to know what makes up your fixed assets, and particularly to understand what represents your consumable inventory because it loses value the longer it is held. From an accounting perspe ... Read More

  September 10, 2018     

Integrating for Efficiency: Why You Should Integrate Your Accounting Platform

Finding a balance between adequate accounting data and accurately managing inventory is a constant issue in many growing businesses. With the increased pressure for quick turnarounds and product delivery, inventory management is becoming increasingly important in building a company. However, many smaller businesses still use legacy inventory manage ... Read More

  May 23, 2018     

Should You Integrate Accounting and Inventory Management?

What many companies dealing with inventory stock may not consider is the business value gained from an integrated accounting and inventory management system. On one hand we have inventory management, which is about knowing what you have in your warehouse and where your inventory stock is located. However, unless it is effectively integrated with yo ... Read More

  May 22, 2018     

How Can Accountants Make The Most Out Of Blockchains?

Blockchain technology is changing how the accounting industry operates and how accountants will continue to perform within the business environment. It is therefore necessary that accountants understand exactly what blockchain is, and what it means to the accounting profession. In simple terms, blockchain is an accounting technology concerned with ... Read More

  April 23, 2018     

What Place Does Accounting Have With Blockchain Technology?

It is hard to turn on the news these days and not see something about cryptocurrencies or blockchains. It sounds futuristic and for some, it is not fully understood. How is this technology is going to shape the accounting industry? What is Blockchain Technology? For those who are new to blockchain, it is effectively accounting […] ... Read More

  April 11, 2018     

Understanding Cloud-Based Technology and Accounting

Cloud-based technology is being used more and more in everyday business applications. Cloud-based technology has a lot to offer – it can enhance the way we work and add value through new smart software systems. One of the growing uses for cloud-based technology is accounting. Not only has its use become very popular, it is […] ... Read More

  April 7, 2018     

The Importance of Inventory Metrics for Business Success

Starting a small business can be an exciting time for the owners, who usually have a solid understanding of how to build and promote a product and how to reach their customer base. However, a key and often overlooked component to business success is understanding key inventory metrics. Managing your inventory correctly can greatly enhance [… ... Read More

  April 5, 2018     

The Anatomy of a Balance Sheet

Listing a company's assets, liabilities and equity, the balance sheet is, along with income and cashflow statements, one of the three key financial statements a business must prepare. The purpose of a balance sheet is to disclose a company’s financial health. It is a statement of the assets, liabilities, and capital of your business, at [&hel ... Read More

  March 30, 2018     

Did You See Unleashed Software at the Accounting Business Expo?

The team from Unleashed Software were in Sydney this week for the Accounting Business Expo – Australia’s biggest expo for the world of accountancy and finance management! Our founder, Greg Murphy, gave great presentations on how accountants can maintain their competitive advantage in the digital era. It was fantastic to see such a great ... Read More

  March 23, 2018     

Accounting For Your Inventory Stock

Inventory can be fast moving and large in scale. In addition, inventory passes through numerous stages throughout its lifespan. In order to gain an accurate picture of a business’ financial situation, it is necessary to properly account for inventory. Depending on how a business calculates their inventory, it can reflect in different ways on thei ... Read More

  January 17, 2018     

Accounting Basics for Your Inventory Stock

Inventory management is the precise control of a business’ inventory incorporating raw material, WIPs (works-in-progress) and completed goods. The reason why inventory must be managed accurately is that it costs money to acquire or make and therefore if not controlled properly, it can represent a huge money drain to the company. Therefore, a larg ... Read More

  January 8, 2018     

Best Practices for Inventory Accounting

Although the basics of inventory control come naturally to many businesses, accurately tracking and recording inventory costs can be a real challenge. Let’s look at some of the best practices when it comes to inventory accounting. Use the Right Measure The cost of goods sold (COGS) is the cost of any inventory that is actually […] ... Read More

  December 29, 2017