57 tagged with "Cost of Goods Sold"
Learn how to calculate and track cost of goods sold for inventory valuation
Markup vs. Margin: The Pricing Mistake That Quietly Costs Small Businesses 7 Points of Profit on Every Sale
Markup and margin share a numerator but not a denominator, and the gap can quietly cost a contractor $99,000 a year. A plain-language guide to the conversion math, a target-margin lookup table, and why retailers, contractors, and restaurants keep underpricing jobs.
Optometry Practice Bookkeeping: Medical vs. Vision Billing, Inventory, and Practice-Value KPIs
Independent optometry practices earn from five distinct profit centers — routine vision plans, medical insurance, frames, lenses, and contact lenses — each with different margins and billing pathways. This guide shows how to build a chart of accounts that separates VSP/EyeMed routine revenue from medical billing, capitalize frame inventory, treat contact lens supplies as deferred revenue under ASC 606, and surface the KPIs (revenue per exam, optical capture rate, normalized EBITDA) that lenders and acquirers ask about.
Brewery Bookkeeping: Cost Per Barrel, TTB Excise Tax, and the Shrinkage That Makes COGS Lie
How to build a craft brewery's books so cost of goods sold tells the truth—a production chart of accounts, a true cost-per-barrel formula using net barrels, TTB excise tax rates ($3.50/barrel on the first 60,000), and the 3–8% shrinkage that inflates margin if ignored.
Bookkeeping for Interior Designers: Retainers, Markup, and the Hidden Math That Keeps Your P&L Honest
Interior design firms run four revenue streams through one chart of accounts and end up paying tax on phantom profits. Treat retainers as a liability, run products through revenue and COGS together, book vendor cost as COGS (never list price), and reconcile every PO before close.
Distillery Accounting and TTB Bonded Inventory: A Craft Distiller's Guide to Proof Gallons, Excise Tax, and Form 5110.40
How craft distilleries should account for bonded inventory, capitalize aging costs, and reconcile TTB Form 5110.40 to the general ledger — including the $2.70 CBMA reduced rate, controlled-group traps, and why federal excise tax belongs in COGS, not operating expense.
Markup Versus Margin: The Pricing Math Small Businesses Get Wrong
A 50% markup is a 33.3% margin, not a 50% margin — markup divides profit by cost, margin divides it by selling price. This guide gives the conversion formulas, a reference table, and shows how the mix-up quietly costs small businesses thousands.
Vending Machine Route Bookkeeping: Reconciling Cash, Tracking COGS, and Knowing the True Profit of Every Location
How to keep books for a vending route at the machine level — reconciling DEX cash counters against deposits, tracking COGS and site commissions per location, and computing the contribution margin that tells you which machines to keep, optimize, or pull.
Bookkeeping for Food Truck Owners: Cash Sales, COGS, and Sales Tax
A step-by-step bookkeeping system for food trucks — separating business money, building a truck-specific chart of accounts, running a daily cash close, tracking food cost at 25–30% of revenue, and treating collected sales tax as a liability rather than income.
Bookkeeping for Landscaping & Lawn Care: Job Costing, Seasonal Cash Flow, and Crew Labor
Landscaping books need four things a generic ledger lacks — job costing, seasonal cash flow forecasting, burdened crew labor, and a service-line chart of accounts. This guide shows how to set up each so your numbers reveal which work earns margin and how much cash bridges the off-season.
Inventory Shrinkage and Cycle Counting for Small Retailers and Warehouses
A practical guide for small retailers and warehouses to compute their shrink rate, design an ABC-based cycle count program, book shrinkage adjustments to the ledger, and turn variance patterns into loss-prevention action.
The Quiet Margin Leak: How Retailers and Warehouses Measure Shrinkage and Fix It With Cycle Counting
Inventory shrinkage is the gap between recorded and physical stock. This guide explains how to calculate a shrink rate, why cycle counting and ABC analysis beat the annual physical count, and how to record the adjustment with a dedicated expense account.
Lower of Cost or Net Realizable Value: How to Write Down Obsolete Inventory
LCNRV requires reporting inventory at the lower of its cost or net realizable value (NRV = selling price − completion costs − selling costs). Once written down under U.S. GAAP, inventory cannot be written back up.