![]() Properly managing inventory and financial data is crucial for understanding profitability and maintaining a healthy bottom line. Inaccuracies should be adjusted through journal entries to align the values correctly. Any discrepancies should be investigated and addressed.Ī best practice is to compare actual Inventory Asset values from the Balance Sheet with Inventory Lab’s inventory value quarterly. Regularly update Inventory Lab’s cost information and compare Gross Margin data between Inventory Lab and accounting systems. Reconcile financial data to bank and credit card statements for accuracy. However, watch out for potential pitfalls. This ensures an understanding of profitability and Gross Margin. Monthly, transfer the value of sold products from Inventory Asset to Cost of Goods Sold (COGS) on the Profit and Loss Statement. For inventory tracking, adopt a modified cash approach in the accounting software, recording inventory purchases as an Inventory Asset on the Balance Sheet. To utilize both Inventory Lab and accounting systems effectively, list products and manage product costs accurately in Inventory Lab. Comparing it to previous periods reveals the growth of assets and debt, including inventory balance based on financial activity and supplier payments. Unlike the Profit and Loss Statement, it provides a comprehensive financial view of the business’s entire lifespan, measuring liquidity and capital efficiency. The Balance Sheet from accounting software is often overlooked but holds significant importance. These accounting systems are vital for tracking financial data based on reconciled banking information, ensuring accuracy. They connect to bank and credit card institutions but not directly to Amazon Seller Central. On the other hand, Quickbooks and Xero serve as accounting software that generates Income Statements (Profit and Loss) and Balance Sheets. This software is particularly beneficial for sellers managing multiple SKU’s, saving valuable time. Additionally, Inventory Lab offers profit and loss insights, including non-product-related business expenses when input manually. It enables direct listing of products on Amazon and tracks product costs and inventory levels by syncing directly with Amazon, providing real-time sales and stock information. Inventory Lab offers unique features that set it apart from Quickbooks and Xero. One question that came up several times was “Do I need Inventory Lab and Quickbooks or Xero?” It’s an easy answer – Yes! Let’s dive into why both Inventory Lab and accounting software are both needed. I had a blast reviewing their accounting books and giving them suggestions. Just email me after signing up, and I will send you the eBook.This past week I had the opportunity to visit with 30 hard-working ecommerce sellers at an Amazon Seller Retreat. If you sign up before January 31st, 2014, I will also throw in a free copy of Adam Bertram's book, How to Source Used Books ($27 value). Utilize report for submitting your income tax.Īdjust expectations and change behaviors to increase profits.įor a one month free trial, please go to. View all your sales and export them from one place.Įffectively manage your time by using our formulas. Removes the need to manually sort labels.įor FBA Sellers, removes the need to manually sort labels. You can also view this on their website as well. Here are the benefits for their Listing, Bookkeeping, and Analytic features. If you're interested in a free one month trial and a bonus, please keep reading. They are the only FBA listing program (that I know of) that offers listing, bookkeeping, and analytics. I've been able to do this using a software program called Inventory Lab. Nothing life changing, but it's a great way to make some extra money and get out of the house at the same time. Right now, my average profit for a library book sale is $439.91. It also helps me to make informed decisions regarding my buying parameters and repricing strategy. Every single library book sale, thrift store, and other sources are tracked so I know whether to return to the same place in the future. If you've been reading this blog for a while you've probably noticed that I've been tracking my Amazon FBA profits to the penny. ![]()
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