{"id":2404,"date":"2022-05-11T09:10:07","date_gmt":"2022-05-10T23:10:07","guid":{"rendered":"https:\/\/www.asapfinance.com.au\/?p=2404"},"modified":"2022-06-23T15:55:57","modified_gmt":"2022-06-23T05:55:57","slug":"what-is-inventory-accounting-and-why-its-important","status":"publish","type":"post","link":"https:\/\/www.asapfinance.com.au\/de\/en\/what-is-inventory-accounting-and-why-its-important\/","title":{"rendered":"What is inventory accounting? &#8211; And why it&#8217;s important"},"content":{"rendered":"<p>Keeping track of your inventory, the time it takes to sell and the profit made on each product is essential if you want to manage your business effectively.<\/p>\n<p><strong>What counts as inventory?<\/strong><\/p>\n<p>Inventory is anything you buy to on-sell, including fully-completed items to sell in your store, products that you install in people\u2019s homes or businesses or materials used to manufacture products.<\/p>\n<p>Work equipment, tools or anything else used in your business don\u2019t count. If you have a drop-shipping business where third-party suppliers ship direct to your customers, you don\u2019t have inventory either.<\/p>\n<p><strong>Accounting for inventory<\/strong><\/p>\n<p>Tracking the movement and value of your inventory is essential for pricing, insurance, accurate tax returns and selling your business.<\/p>\n<p>Good inventory tracking can also help you:<\/p>\n<ul>\n<li>Manage stock levels \u2013 order more popular items and fewer slow-moving products<\/li>\n<li>Identify profitable items and true margins<\/li>\n<li>Find bulk discounts on popular items<\/li>\n<li>Boost marketing by identifying sales trends It all adds up to less waste and better cash flow \u2013 which means more money for business-building activities.<\/li>\n<\/ul>\n<p><strong>Start accounting for inventory now<\/strong><\/p>\n<p>To manage your inventory effectively, you need to track how much you have, how much it costs and how much you\u2019re selling it for. You also need to factor in discounts, transport and storage costs, damage and write-offs.It can get pretty complex \u2013 so you might want to get help from people who have done it all before.<\/p>\n<p>Want to build a better understanding of your inventory? Get expert help from our accounting team.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Keeping track of your inventory, the time it takes to sell and the profit made on each product is essential if you [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2405,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1,131],"tags":[],"translation":{"provider":"WPGlobus","version":"2.10.4","language":"de","enabled_languages":["en","es","de","fr","ru"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"de":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false},"ru":{"title":false,"content":false,"excerpt":false}}},"jetpack_featured_media_url":"https:\/\/www.asapfinance.com.au\/wp-content\/uploads\/2022\/05\/store-5619201_1920.jpg","_links":{"self":[{"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/posts\/2404"}],"collection":[{"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/comments?post=2404"}],"version-history":[{"count":2,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/posts\/2404\/revisions"}],"predecessor-version":[{"id":2407,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/posts\/2404\/revisions\/2407"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/media\/2405"}],"wp:attachment":[{"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/media?parent=2404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/categories?post=2404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asapfinance.com.au\/de\/wp-json\/wp\/v2\/tags?post=2404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}