top of page

Inventory

shutterstock_1813787441.jpg

Learning how to manage inventory efficiently is critical to any business that sells physical goods.  From timely ordering to proper receiving and storage, it is vital to get things right because mistakes will affect your bottom line. 

​

Given the cash outlay required, inventory often constitutes one of a company's largest balance sheet items and significantly influences working capital.

​

To maintain optimum inventory levels, you need robust systems to accurately track inventory levels, policies and processes to manage vendors and customers, supply chain and maintain control of your inventory levels and reporting that enables you to monitor the effectiveness.

​

Although there are no one-size-fits-all approaches to inventory management, there are a few best practice processes that should be considered:

Centralizing inventory management

Strengthening internal controls

Automating processes to improve accuracy and completeness of your inventory

Consolidating vendors

Identifying and tracking Key Performance Indicators (KPIs)

​

Physical Inventory

​

TBD

Expertise that produces results

Reconciliation of accounts

​

TBD

Financial Analytics

​

TBD

Policies and Procedures

​

TBD

Jon, couple of alterntive side presentations

Our Commitment:

  • To always put your interests first

  • We will exceed your expectations

  • We will deliver more value than you pay for

  • And we will conduct ourselves with he highest degree of integrity.

Cash and Cash Forecasting

  1. Bank account reconciliations

  2. Preparation of bank confirmations and coordinate mailing

Accounts Receivable

  1. AR Walk (Beg Bal+Billings-Payments=End Bal)

  2. Reconciliation of aged trial balance to the general ledger

  3. Analysis of aging and evaluation of Allowance for Doubtful Accounts

  4. Collection Services

Inventory

  1. Inventory Walk (Beg Bal+Purchases-COS=End Bal)

  2. Physical Inventory Procedures (design, assist with implementation and participate with physical observation)

  3. Reconciliation of physical results to the general ledger

​​Fixed Assets

  1. FA Walk (Beg Bal=Purchases-Depreciation/Write-offs=End Bal)

  2. Reconstruction of Fixed Asset details and reconciliation to the General Ledger

  3. Review depreciation policies and update depreciation records

  4. Walk of Allowance for Doubtful Accounts and reconciliation to the General Ledger

Accounts Payable

  1. AP Walk of payables activity (Beg Bal+New Payables-Payments=End Bal)

  2. Vendor reconciliations

  3. Reconciliation of aged trial balance to the general ledger

Other Miscellaneous Asset/Liability Accounts

  1. Determine year-end accruals

  2. Update valuation schedules for intangible assets

Long-term Debt (Including Capitalized Leases under ASC 842)

  1. Update amortization schedules

  2. Coordinate confirmations

  3. Reconcile current and long-term liability balances and related interest expense to the general ledger

Payroll

Reconciliation of payroll expense per your payroll reporting system to the general ledger

Reconciliation of payroll tax liability accounts

Determine year-end accruals for wages, and PTO or vacation time

Revenue Recognition (including ASC 606)

  1. Review policies and, in consultation with outside auditors prepare supporting analyses

  2. Prepare GAAP accounting memo

  3. Evaluate year-end cutoff procedures, if applicable

  4. Assist with evaluation of your current polices compared to new emerging guidelines with convergence of U.S. GAAP and IFRS.

Inventory

  1. Inventory Walk (Beg Bal+Purchases-COS=End Bal)

  2. Physical Inventory Procedures (design, assist with implementation and participate with physical observation)

  3. Reconciliation of physical results to the general ledger

Payroll

Reconciliation of payroll expense per your payroll reporting system to the general ledger

Reconciliation of payroll tax liability accounts

Determine year-end accruals for wages, and PTO or vacation time

Fixed Assets

  1. FA Walk (Beg Bal=Purchases-Depreciation/Write-offs=End Bal)

  2. Reconstruction of Fixed Asset details and reconciliation to the General Ledger

  3. Review depreciation policies and update depreciation records

  4. Walk of Allowance for Doubtful Accounts and reconciliation to the General Ledger

Insurance

  1. Obtain Schedule of Insurances and reconcile expense and prepaid balances to the general ledger

  2. Analyze loss information and determine proper accruals for workers comp, and other auditable policies.

  3. Working with your existing brokers or introducing to others, we can help you develop compresensive risk management procedures and help you reduce your insurance cost

​

Sales & Use Tax

  1. Sales and use tax return reconciliation

  2. Review of sales and use tax policies and procedures

  3. Determine year-end accruals

​

Financial Statement Preparation

  1. Prepare draft financial statements (balance sheet, income statement and statement of cash flows)

  2. Prepare supporting footnote schedules

  3. Preparation of lease schedules for operating and capital leases, including reconciliation of expense and liabilities to the general ledger

bottom of page