eCommerce Accounting Services & Compliance Management

Many companies are adopting energy-efficient manufacturing processes, using renewable energy sources, and implementing transportation and logistics strategies to reduce their greenhouse gas emissions. Consumer packaged goods (CPGs) are products that are consumed daily by individuals and households. These products are typically purchased frequently and have a relatively low cost per use.

Not only are dietary preferences changing but also the rise in shopping behaviors such as grocery pick up or delivery, have changed. With in-depth controls and full transparency into spending –you can spot trends before they become problems and stop worrying about duplicate or fraudulent invoices, inaccurate forecasts, and missed discounts or late fees. The TeamUnlike working with a single bookkeeper, an outsourced bookkeeping and accounting firm like Accountfully offers business owners the resources and knowledge of an entire team rather than a single person. Accountfully staffs engagements with CPG-specific experts who understand the ins and outs of inventory challenges. This allows them to catch things early, answer industry specific questions, and be a guide for clients.

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To sustain their competitiveness in a consumer-centric world, CPG manufacturers must seek ways to reduce costs, maintain profitability, and improve productivity. Food entrepreneurs and CPG business owners benefit greatly when they have access to a tax team that works in conjunction with their daily bookkeeping and accounting team. Having all financial operations under one roof is a time and cost saving benefit that comes with working with an outsourced bookkeeping and accounting firm. An outsourced bookkeeping and accounting firm should create a tailored engagement that fits the business’ specific challenges and needs. Because no two businesses require the same approach, it’s important for the bookkeeping and accounting firm to understand the business owners goals before proposing a solution. Generally speaking, a business owner can expect the following from an outsourced bookkeeping and accounting engagement that has been designed to help food entrepreneurs and CPG business owners.

• This includes using eco-friendly packaging materials, reducing waste, and adopting sustainable sourcing practices.
• It enables better asset utilization through continuous process improvements, enhanced visibility, and smooth interactions across departments.
• This is an area of the income statement that is full of activity for a tangible product-driven company.
• A majority of CPG companies find it a challenge to manage logistics across multiple vendors, manufacturing locations, distribution centers, Carrying and Forwarding (C&F) locations, distributors, and dealers.
• A good outsourced bookkeeping and accounting firm customizes its engagements to support the varied needs of its clients.

And if a business owner tackles the bookkeeping and accounting themselves for awhile—that’s alright too. It isn’t always the most affordable option or ideal way to get started, but growth happens and Accountfully is available to support business owners through all phases of it. Managing promotions and discounts offered by manufacturers is complex due to the multiple layers of promotions, discounts and ad hoc promotions, and assumption-based category sales objectives. A majority of manufacturers provide retailers with trade discounts, quantity discounts, seasonal discounts, etc., adding to the complexity of trade promotions in terms of volume, price and process. This complexity must be addressed with a well-integrated, effective trade promotions cycle. With customers throughout the consumer packaged goods industry, we have experience supporting CPG businesses like yours.

Taxjar

CPGs include a wide range of items such as food and beverages, personal care products, household cleaning supplies, and over-the-counter medicines. Infosys’ end-to-end HRO solution is based on a repeatable transaction process and HR technology platforms and standards to optimize HRO engagements with standardized and improved processes. The complex operational landscape and sub-standard integration of delivery often prevent cost savings. Every PLTFRM Finance team member goes through extensive training and continual education to make sure we are on the cutting edge of accounting and finance. All of our services and technologies integrate within your existing finance platform, so there are no learning curves on your end.

We’ve selected sites in the US and Kenya with the goal of impacting post-fire restoration, biodiversity, indigenous cultural restoration, access to food, and livelihood. To properly account for returns, a business needs to maintain accurate records of all returns, including the reason for the return, the date, and the value of the returned product. This information is important for tracking patterns of returns and identifying potential issues with products or the sales process. CPG sales can lead to merchandise returns, customer bookkeeping for startups credits for various reasons, have right-of-return stipulations, and even offer warranty terms to its customers. As such, sales returns and allowance accounts should be established and maintained to properly reflect expected sales, COGS, inventory, and accounts receivable within the period on both the P&L and Balance Sheet. Generally, revenue is recognized when goods are sold, but CPG companies often offer discounts, promotions, and other incentives to encourage sales, which can make revenue recognition more complex.

Pick and Pack, Scan & Ship Services

All direct and indirect spend is digitized and securely archived in one single repository, regardless of format or file type. Strengthen supplier relationships with timely payments allowing for negotiations on better sourcing opportunities. Accurately process high volumes of complex invoices faster without increasing your headcount or workload. And as the name implies, CPGs are traditionally packaged in easily-recognizable wrapping that consumers can quickly identify.

Consumer packaged goods (CPG) are items used daily by average consumers that require routine replacement or replenishment, such as food, beverages, clothes, tobacco, makeup, and household products. A handful of expenses fit between gross revenue and net revenue on the income statement. These expenses are related to discounts between the product manufacturer and the retailer that are used to impact sales to the end customer.

Balance headcount with manufacturing requirements

Companies that want to develop best-in-class departments can take strides by asking the right questions and taking care to work their way to the right answers. I’ve broken up the questions below into broader areas to help CPG accounting and finance teams focus their efforts. While some of the activities expressed in the questions below seem readily apparent, they are not always activities that are prioritized and completed. Strategic partners are helpful not only as a business get started, but also as a business grows. Whether a business owner is planning a launch or developing an additional product, there’s no wrong time to outsource bookkeeping and accounting. Be sure to adequately staff your accounts receivable and deductions teams, so they can provide timely and relevant data that enables management to effectively evaluate trade spend.

To that end, invest in staff training on accounting, ERP and trade promotional management (TPM) systems. Require cross-functional teams to use systems of record and set clear expectations for each user’s role. Trade spend can be defined as the amount of money manufacturers provides to a retailer for the purposes of selling a product to consumers, which is typically measured as a percentage of sales. Scenario PlanningExplore various strategic-planning processes with the ultimate solution that lets you create and examine multiple scenarios, identify potential outcomes, and make informed decisions to stay ahead.

A chart of accounts is helpful for giving investors insight into your company’s overall performance and financial health to make it easier to secure funding for your business during high growth periods. Accrual accounting gives you a broader picture of your real-time finances and allows you to make better decisions about sales tactics and market trends. Accrual accounting makes it easier to analyze your finances period to period and understand your cost of goods sold.