You want to make sure that the figures on your inventory balance sheet match up with what’s currently in your warehouse. Match inventory recorded with actual inventory In ecommerce, calculating ending inventory is a business best practice as well as an important part of the accounting process. You’ll always want to know much you’re selling - and how much you’re not selling! Ecommerce inventory can be seen as just another cost until it gets sold. Knowing your ending inventory value will impact your balance sheets and your taxes, so it’s important to calculate the value of your inventory correctly. For a balance sheet to be complete, you’ll need to claim all inventory as an asset. When a given accounting period ends, you take your beginning inventory, add net purchases, and subtract the cost of goods sold (COGS) to find your ending inventory’s value. What is ending inventory?Įnding inventory refers to the sellable inventory you have left over at the end of an accounting period. In this article, you’ll learn why ending inventory is an important factor in calculating cost of goods sold, and how the right inventory management software can help you determine the value of your ending inventory at the end of the accounting period.
FINALE INVENTORY REPORT NOT SAVING HOW TO
That’s why it’s important to understand how to best calculate the value of your ending inventory and to choose the right inventory valuation method for your business.
But calculating how much sellable inventory you have on hand at the end of an accounting period can be a challenge. When it comes to inventory accounting, knowing your ending inventory is essential.