Inventory Management
We track your inventory in your books so your financials are accurate. Know what you have, what it cost, and what it is worth.
The Service
Inventory management for bookkeeping means tracking what you bought, what you sold, and what you have left. We record purchases, adjust for sales, handle damaged or returned goods, and make sure your cost of goods sold is accurate every month.
This is not warehouse management software. We work with whatever system you use to track physical inventory and make sure those numbers tie to your books correctly. Your balance sheet shows the right inventory value and your profit and loss reflects actual costs.
What We Track
Inventory purchases, sales, adjustments for damaged goods, returns, and physical count variances. We calculate cost of goods sold using FIFO, LIFO, or average cost depending on your business.
Monthly Reconciliation
We reconcile your physical inventory counts to your books every month. Discrepancies get investigated and adjusted. Your inventory value on the balance sheet matches what you actually have.
The Problem
Most product-based businesses do not track inventory properly in their books. They record purchases as expenses instead of assets. They never adjust for what they sold. Their cost of goods sold is a guess and their profit numbers are wrong.
Without accurate inventory tracking, you cannot price products correctly or know your true margins. You might think you made money when you actually lost it. Your balance sheet is off and your tax return is based on bad numbers.
Wrong Profit Numbers
When inventory is not tracked right, profit and loss is meaningless. You cannot trust your margins, compare period to period, or make informed pricing decisions. You are guessing about profitability.
Tax Problems
The IRS requires accurate inventory tracking for businesses that buy or make products to sell. Get it wrong and your tax return is wrong. Audits get messy when you cannot explain your inventory valuation.
The Outcome
Your books show accurate inventory values and cost of goods sold. You know your real margins by product and can make pricing decisions based on actual costs instead of estimates. Your financial statements are reliable.
Tax compliance is easier because your inventory records are clean and defensible. Your CPA can file your return without adjusting your numbers. You avoid issues with the IRS because everything is documented and correct.
Better Pricing Decisions
Knowing your true costs lets you price products profitably. You can identify which products make money and which ones do not. No more selling at a loss without realizing it.
Accurate Financials
Your balance sheet reflects what you actually own. Your profit and loss shows real profitability. You can compare months and years meaningfully because the numbers are consistent and correct.
DFW's Trusted Bookkeeping Firm
The Next Step:
A 15-Minute Call
Tell us what you're dealing with. We'll listen, ask a few questions, and then give you a simple price to do the work for you.
