Inventory Accounting

Overview

What we deliver

We manage inventory accounting from costing methods to year-end valuation, supporting US GAAP ASC 330 and IFRS IAS 2 compliance.

We support product companies with end-to-end inventory accounting, including costing method selection, standard cost setting, variance analysis, and lower of cost or net realizable value testing under ASC 330 and IAS 2. Our team handles weighted average, FIFO, and specific identification methods, reconciles perpetual to periodic systems, and posts inventory adjustments for cycle counts, physical counts, and shrinkage. We work with multi-warehouse, multi-currency, and consigned inventory structures and align landed cost calculations with customs and freight documentation. For US filers, we apply ASC 330 and address LIFO reserves where used; UK and IFRS clients receive IAS 2 treatment with the LIFO prohibition observed. We coordinate with auditors on reserves for obsolete, slow-moving, and excess stock, and document policies for IRS, HMRC, CRA, and ATO reviews. Reporting ties back to the general ledger and to operations dashboards.

Fit Check

Built for teams like yours

Who it's for

Manufacturers
Distributors and wholesalers
E-commerce brands
Retail chains
Importers and 3PL operators

Pain points we solve

Book to physical count gaps
Incorrect landed cost capture
Outdated standard costs
Unsupported obsolescence reserves
Multi-warehouse reconciliation issues

What's included

Capabilities

Everything we cover in this engagement.

Costing method selection
Standard cost setup and review
Landed cost and freight allocation
Cycle and physical count posting
Lower of cost or NRV testing
Obsolescence reserve modeling
Multi-warehouse reconciliation
Inventory subledger to GL tie-out

How we work

Our process

A clear, predictable path from kickoff to outcomes.

01

Diagnostic

Review current costing method, ERP setup, and reconciliation gaps.

02

Policy design

Document costing policy, reserve methodology, and count cadence.

03

Implementation

Update ERP costing, build schedules, and align landed cost rules.

04

Ongoing accounting

Post month-end entries, reconcile balances, and run variance reviews.

05

Reporting and audit

Prepare audit-ready files, reserve memos, and management dashboards.

What you get

Deliverables & outcomes

What you get

Inventory accounting policy
Monthly inventory reconciliation pack
Standard cost roll schedule
Obsolescence and NRV reserve workings
Landed cost allocation file
Audit support binder

Outcomes you can expect

Accurate cost of goods sold
Audit-ready inventory balances
Reduced shrinkage write-offs
Cleaner gross margin reporting
Better stock decision making

Timeline

4 to 10 weeks for setup, ongoing monthly

Engagement

Monthly retainer, Project, Sprint

Tools we use

NetSuite, QuickBooks, Xero, Cin7, SAP Business One

KPIs we track

Inventory turnover, days inventory outstanding, gross margin, shrinkage rate, reserve as percent of stock

Client stories

What clients say

"

We had 14 cornerstone pages stuck on page two for 18 months. Their SEO crew rewrote the internal linking, cleaned up our schema, and shipped 22 supporting briefs over a quarter. Eight of those pages broke top three by month five. Organic pipeline went from a trickle to our second-largest source. Felt like watching interest compound.

James T.

"

Two weeks before our seed round we still did not have a defensible model. Their fractional CFO rebuilt our three-statement forecast, pressure-tested the assumptions, and walked me through every line before the partner meeting. We closed 1.4M on the terms we wanted. The investor specifically called out how clean the financials looked compared to the last five decks she had seen.

Hannah B.

Proof