Inventory Accounting
Tracking materials, supplies, and finished goods with accurate counts and valuations. Inventory records are reconciled against your accounting file so the numbers on your balance sheet match what is actually on the shelf.
The Work
Inventory accounting connects the physical goods you sell to the numbers in your accounting file. It tracks what you purchased, what you sold, what you still have, and what each unit is worth. When this is done correctly, the inventory value on your balance sheet reflects reality.
We work with businesses using Cin7 Core, SOS Inventory, and Shopify. The inventory system tracks the stock movement and the accounting file records the financial impact. Both need to agree, and keeping them in sync is the core of this work.
Two Methods
Two Methods
We can support inventory in QuickBooks Online through month-end adjusting entries or through direct integrations with your inventory platform. The right approach depends on how often your stock moves and how much detail you need flowing into the accounting file.
Cross-System Review
Cross-System Review
We review that inventory matches across systems. If Cin7 Core, SOS Inventory, or Shopify shows one number and QuickBooks Online shows another, we track down the difference. That reconciliation is where most inventory problems are caught.
Why It Matters
Inventory is often the largest asset on the balance sheet for product-based businesses. When the count is wrong or the valuation is off, every report built on top of it is also wrong. Cost of goods sold gets distorted, gross margin looks better or worse than it is, and tax returns can be filed on numbers that do not hold up.
Most owners feel this problem before they can name it. Profit on paper does not match the cash in the bank. A product line looks profitable but the business is not growing. Inventory accounting closes the gap between what the books say and what is actually happening in the warehouse.
Margin Accuracy
Margin Accuracy
You cannot price a product correctly if you do not know what it actually costs. Proper inventory accounting captures the landed cost of each item so the margin you see on a sales report is the margin you are really earning.
Tax Position
Tax Position
The IRS expects ending inventory to be reported accurately. An overstated number inflates profit and the tax bill. An understated number raises questions about how the value was determined. Clean records give the tax preparer something they can stand behind.
What You Get
Your inventory systems and your accounting file tell the same story. The stock counts in Cin7 Core, SOS Inventory, or Shopify line up with the inventory asset balance in QuickBooks Online. When something does not match, it gets investigated and resolved instead of carried forward month after month.
You also get reports that are worth reading. Cost of goods sold reflects what was actually used or sold. Gross profit is calculated on real costs. Decisions about pricing, purchasing, and product mix are based on numbers you can trust.
Reliable Balance Sheet
Reliable Balance Sheet
The inventory line on your balance sheet reflects goods that actually exist at a value that can be defended. Lenders, investors, and tax authorities all look at this number, and it needs to be right.
Less Year-End Cleanup
Less Year-End Cleanup
When inventory is reconciled monthly, there is no scramble at year-end to figure out what is on hand and what it is worth. The work is already done, and the numbers handed to the tax preparer are ready to use.
Trusted Accounting for Small Businesses
First Step:
Start With a Call
Tell us about your business and what you need help with. We'll ask a few questions, evaluate your current situation, and let you know how GMJ can support your books, taxes, and day-to-day operations.
