With multiple years of specialized experience, CJBS is a leading authority in the Consumer Packaged Goods (CPG) and Food & Beverage sectors. At CJBS, we leverage our deep industry knowledge to identify and rectify operational inefficiencies, optimize resource allocation, and significantly reduce tax obligations, thereby enhancing profitability and performance. Having a team of experienced professionals with expertise in the various areas of accounting and finance can help give you more immediate visibility on the financial health of your business.
Your Consumer Packaged Goods Accounting Expert
Every penny counts, so you need to accurately track product costs, including raw materials, production, and packaging costs. You can price your products more competitively once you have tighter control of your expenses. If your revenue gets cut in half overnight, so do your product sold and shipping costs, and you can pull down your marketing expense with relative ease – all proportionally. For example, a sales change affects bookkeeping for cleaning business accounts receivable and cash flow performance. You can use your COA to create customized reports that streamline analysis and decision-making.
Leveraging Advanced Financial Management Tools
Our team stays up to date on the latest regulations and best practices which can be a challenge for small businesses to do on their own. Accrual accounting is the principle that financial transactions should be recorded when goods and services are provided, rather than when the payment is made or received. This practice combines current and future cash inflows and outflows to provide a more accurate representation of a company’s financial and cash flow situation. CPG accounting isn’t just about crunching numbers; it’s the engine that keeps your business going. As we have seen, the most successful CPG businesses don’t have the best products; they have the best financial processes. With the proper CPG accounting, you make sure there’s a positive cash flow, get a clear picture of revenue and expenses, and can easily project future earnings.
- We also document considerable remaining heterogeneity between households even after stripping out (year-by-year) aggregate fluctuations.
- But sub-par corporate accounting practices won’t only make handling your finances harder to run your company today—it will also impact your ability to grow and thrive in the future.
- And if you’re trying to scale, getting a handle on these complexities is imperative.
- In CPG, your cost of goods sold isn’t just an accounting line — it’s a constantly shifting target.
- The CFOx team then developed a monthly reporting package for management and investors.
Budgeting and Forecasting for Sustainable Growth
In a CPG business, online bookkeeping you have to track tangible products and store and sell them. Profit margins are thin in such a business model, and consumer preferences change faster than TikTok trends. Isolating marketing as a % of sales, MER, or ROAS, or however you choose to assess marketing efficiency, will quickly enable you to identify trends and seasonality within your business. Using this approach, COGS includes product costs and the variable costs incurred for fulfillment and operations.
This way, your brand can scale while maintaining a steady cash flow, even during off-peak production cycles. Working with an accountant who specializes in CPG brands gives you access to financial data and industry insights that can help with long-term planning, profitability analysis, forecasting, and pricing. You’ve likely learned running a consumer packaged goods business means jumping over a maze of financial hurdles. Between developing a network of reliable suppliers, managing inventory and cash flow, keeping tabs on the cost of goods sold, and weathering seasonal variations, it’s no wonder a one-size-fits-all accountant doesn’t cut it. CPG companies can’t run effective operations without insight into their cash flow.
