Bookkeeping plays a vital role in your business operations, but how much do you know about the profession that makes mathematical magic? Let’s explore what bookkeepers do, examine some of the benefits of bookkeeping, and explore your options for using a bookkeeper. There’s a lot out there to think about and you don’t need to do https://www.bookstime.com/ it all at once. For example, do one social media post per week, then two, and so on. Eventually, you’ll be on a schedule with one every business day of the week and you’ll look back amazed at how you got there. Make sure you take the time to build a sustainable culture in your firm that supports people on a personal level.

So the owners of the factory would have more options to choose from. The FIFO method is used for situations where the first units of your inventory are often the first ones sold. As an example, you have a clock factory and make 50 clocks on a Monday, and the cost is $7 per unit. The next day, you make 50 more clocks, though the cost goes down to just $6 each. If you were to sell 50 clocks on Wednesday, you would put the COGS as $7 per unit on the income statement.

Inventory Management for Small Business: A Simple Guide

Fortunately, the best inventory management solutions—including inventory apps like Sortly—allow businesses to track inventory no matter where stock is located. QuickBooks Live connects bookkeepers with small businesses that need help doing their books. Some tasks QuickBooks Live bookkeepers perform include providing assistance in setting up charts of accounts, categorizing transactions, reconciling accounts, preparing financial reports, and more.

• Smaller warehousing enterprises don’t need complex software suites.
• While both you and the client may choose to keep hard copies, you need a way to share them online.
• Double-entry accounting is the process of recording transactions twice when they occur.
• Choosing the best inventory management software for your business is like choosing the best car for your high school-age child.
• Customers schedule an appointment to have a bookkeeper review their transactions, and  multiple schedules are available to choose from.
• Costs, also known as the cost of goods sold, is all the money a business spends to buy or manufacture the goods or services it sells to its customers.
• Bookkeepers are responsible for recording financial transactions related to the business.

It’s very easy to order excess inventory when you don’t closely track stock, which leaves you cash-strapped in the short term. Over time, inventory overages also lead to bottom-line losses due to expired, outdated and otherwise remote bookkeeping services unsellable stock. A professional bookkeeper at Rocket Bookkeeper will get in touch with you on a weekly basis to discuss your accounts, respond to your inquiries, and offer suggestions for enhancing your financial performance.

Audit your inventory quantities—and your inventory strategy—regularly

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