Establish ownership, units and movement records
We define product codes, pack sizes, storage locations and the records for receiving, transfers, sales, returns and write-offs. Goods physically in the warehouse may belong to a supplier or customer, while owned goods may be in transit. We preserve those distinctions and agree how the stock schedule reconciles to the accounting balance.
Make margin depend on complete costs
Purchase prices alone can hide freight and other directly attributable costs. We agree the costing approach with the business and its adviser, keeping recoverable tax separate and reviewing non-recoverable amounts appropriately. Consistent units matter: cases purchased and individual units sold need a documented conversion before a margin comparison is meaningful.
Illustrative example: freight changes the unit picture
An illustrative order contains 240 units costing $12 each, plus $360 of attributable freight. Ignoring taxes for this example, total cost is $3,240 and cost per unit is $13.50. At a $20 selling price, gross margin is $6.50 per unit, or 32.5% of sales, before other operating expenses.
Turn counts into useful purchasing information
A count process records the cut-off, locations covered, damaged items and approved adjustments. We investigate differences before changing the ledger and can highlight slow stock, returns awaiting supplier credit and products with weakening margins. The inventory worksheet supports an initial calculation; selecting valuation methods and any year-end write-down requires the appropriate accounting review.
Questions about this work
Can you work with a separate warehouse system?
Yes. We agree which records control quantities and reconcile the resulting values to the accounting file.
Does a stock count automatically justify a write-off?
No. Differences need investigation, supporting records and appropriate approval before the accounting treatment is finalized.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review