Content
Economic slumps often trigger flagging durable goods sales because people are more likely to hold onto their cash in times of economic uncertainty. This is especially true with consumers who own older versions of a durable goods product. A family may opt to squeeze a few more years from an outmoded washing machine, rather than upgrade to a newer model. By contrast, sales of CPG staples like bread, milk, and toothpaste are less affected by market fluctuations. When establishing an inventory reserve for the first time, you will debit the inventory reserve related account within the Cost of Goods Sold (COGS) section of the P&L and credit your inventory reserve account on the Balance Sheet.
Track and manage the flow of payments and disputes with retailers who don’t pay in full and on time. Achieve peak performance and resilience in source-to-pay — from lead time accuracy to selecting vendors based on their sustainability ratings — to work with the right suppliers in exactly the right way. Successfully scale and optimize multi-channel operations to reach your customers in new ways.
Walmart Marketplace Integration
While fashion brands have become accustomed to this rise and fall of styles, many aren’t prepared to face the latest trend of shrinking margins, raw materials shortages, and price hikes. Complex supply chains – including many small businesses – require a fast and reliable invoice through payment process, and https://www.vizaca.com/bookkeeping-for-startups-financial-planning-to-push-your-business/ fashion brands are struggling to keep up. This is creating disruption across fashion brands’ supply chains, forcing them to assess spend at a moment’s notice, yet many lack the technology to do so. While the health and beauty market may always be unpredictable, your businesses spend doesn’t have to be.
Our outsourced solution enables you to leverage enterprise-level skills and processes at a fraction of the cost of hiring additional employees. For 100 years, Anchin has provided accounting, tax, financial and operational advice to private companies. As specialists in the Consumer Products industry, the Branded CPG Group at Anchin has the unique combination of professional accounting experience and industry knowledge to help you reach your business goals.
Make light work of consolidation and lease accounting
CPG companies must assess the likelihood of inventory becoming obsolete and create inventory reserves to account for potential losses. This may occur due to changing consumer preferences or market trends or when a product is approaching its expiration date. CPG companies may also create inventory reserves to account for potential losses due to damage or deterioration of inventory.
