Find Total Merchandise Cost: A Simple Guide [US]

Ever wondered exactly how to find total cost of merchandise purchases? It's a question every business owner in the US, from that quirky Etsy shop to blossoming enterprises, grapples with daily. Mastering this isn't just about crunching numbers; it's about understanding how your initial inventory investment fuels your profit. The Generally Accepted Accounting Principles (GAAP) in accounting emphasize the importance of this calculation. You'll be able to pinpoint your profit margins, optimize your pricing strategies, and make smarter decisions. In the long run, using accounting software like QuickBooks and having a basic understanding of cost accounting makes figuring out how to find total cost of merchandise purchases simple.

Why Understanding Merchandise Cost Matters: A Business's Secret Weapon

In the rollercoaster world of running a business, especially one dealing with tangible goods, it's easy to get caught up in the excitement of sales, marketing, and the day-to-day hustle.

But let's be real: behind every successful venture lies a solid understanding of the numbers.

And when it comes to numbers that matter, merchandise cost – the cost of those goods you sell – is right up there at the top.

What Exactly Is Merchandise Cost?

Simply put, merchandise cost is what you pay to acquire the products you sell to your customers.

Think of it as the foundation upon which your entire business is built.

It includes the purchase price, shipping fees, and any other direct expenses involved in getting those goods ready for sale.

Understanding this figure is absolutely crucial because it's the cornerstone of a healthy, profitable business.

How COGS Impacts Your Bottom Line

Merchandise cost directly feeds into the Cost of Goods Sold (COGS), which is a vital component of your income statement.

COGS represents the direct costs associated with producing and selling your goods.

The lower your COGS, the higher your gross profit. A higher gross profit, naturally, can lead to a healthier net income – the actual profit you take home after all expenses are paid.

Think of it this way: every dollar saved on merchandise cost is a dollar that goes straight into your pocket. That's why understanding it is so powerful!

Pricing, Profitability and Financial Housekeeping

Knowing your merchandise cost isn't just about boosting profits. It also empowers you to make smarter decisions across the board.

Here are a few examples:

Strategic Pricing

How can you set competitive prices that also ensure a healthy profit margin? You have to know your costs!

Understanding your merchandise cost allows you to determine the optimal price point that attracts customers while still generating a healthy return.

Smarter Purchasing Decisions

Knowing the true cost of your merchandise allows you to better evaluate suppliers and negotiate better deals.

Can you get a better price by buying in bulk? Are there alternative suppliers who offer similar quality at a lower cost? Knowledge is power!

Accurate Financial Reporting

Finally, accurate COGS calculation is vital for accurate financial reporting.

This impacts everything from taxes to securing loans. Proper financial reporting provides transparency and helps you avoid potentially costly errors.

In short: Mastering merchandise cost is like having a secret weapon in your business arsenal.

It's not just about crunching numbers; it's about making informed decisions that drive profitability, ensure accurate pricing, and pave the way for long-term success. So, let's dive in and unlock that power!

Decoding COGS: What It Includes and Excludes

Okay, so you're getting the hang of why merchandise cost matters. Now, let's dive a bit deeper into exactly what goes into figuring out that crucial number. We're talking about COGS, or Cost of Goods Sold. It sounds intimidating, but trust me, it's not brain surgery! Think of it as the direct cost of making or buying the stuff you sell.

What IS Cost of Goods Sold (COGS)?

Simply put, COGS represents the direct expenses tied to producing or acquiring the goods your business sells. It's the cost of the raw materials, components, or merchandise itself, plus any directly related expenses incurred to get those goods ready for sale.

COGS: The "In" Crowd - What's Included?

So, what gets a VIP pass into the COGS party? Let's break down the typical attendees:

Purchase Price of Merchandise: The Obvious One

This is the most basic component. It's the price you paid your supplier for the goods you're reselling. Pretty straightforward, right?

Shipping and Freight: Getting It to Your Door

These are the costs associated with getting the merchandise to your location. Think of the fees you pay to shipping companies like FedEx, UPS, or freight carriers. If you had to pay to get those goods to your warehouse or store, those costs are part of COGS.

Sales Taxes (in the US Context): Uncle Sam's Share

In the United States, any sales taxes you paid when purchasing the merchandise for resale are typically included in COGS. This can be a bit tricky, so always double-check with your accountant or tax advisor.

The COGS Guest List: Who's NOT Invited?

Just as important as knowing what is included in COGS is understanding what is not. Here are a few common expenses that often get mistakenly added to COGS:

Operating Expenses: Running the Show

Things like rent for your store, utility bills, marketing costs, and salaries for your administrative staff are not part of COGS. These are operating expenses that keep your business running but aren't directly related to the goods you're selling.

Interest Expenses: Paying for the Loan

If you took out a loan to finance your business or purchase inventory, the interest you pay on that loan is not included in COGS. Interest expense is a separate line item on your income statement.

Administrative Costs: Behind-the-Scenes Support

The salaries of your administrative staff, like bookkeepers or HR personnel, are not directly tied to the production or acquisition of goods. These costs are considered administrative expenses and are excluded from COGS.

Think of it this way: If you could still sell your merchandise without incurring a particular expense, that expense likely doesn't belong in COGS.

Understanding what is (and isn't) included in COGS is a fundamental step in accurately assessing your business's profitability. Get this right, and you'll be well on your way to making smarter business decisions!

Who Needs to Know About Merchandise Costs?

Okay, so you're getting the hang of why merchandise cost matters. Now, let's dive a bit deeper into exactly who benefits from keeping a close eye on these figures.

It's not just for the number-crunchers in the accounting department – understanding merchandise costs is vital for various roles across a business. Let's break down why.

Retailers: Pricing for Profitability

For retailers, understanding merchandise costs is absolutely critical for setting the right prices.

Think about it: if you don't know how much it actually costs you to acquire your goods, how can you accurately determine a price that will cover your expenses and generate a profit?

Accurate COGS data allows retailers to:

• Calculate profit margins accurately.
• Identify products that are underperforming.
• Develop effective pricing strategies to maximize revenue.

Without this knowledge, you're basically flying blind, and that's a recipe for disaster.

Bookkeepers & Accountants: The Guardians of Accurate Records

Bookkeepers and accountants are the unsung heroes of any business, responsible for maintaining accurate financial records. COGS is a major component of the income statement, and its accurate calculation is essential for preparing reliable financial reports.

This includes things like:

• Ensuring compliance with accounting standards.
• Providing stakeholders with a clear picture of the company's financial performance.
• Supporting tax reporting.

In short, they ensure the books are in order, giving decision-makers confidence in the numbers.

Purchasing Managers: Smart Buying Decisions

Purchasing managers are on the front lines, making decisions about what to buy, how much to buy, and from whom to buy it.

A deep understanding of merchandise costs empowers them to:

• Negotiate better deals with suppliers.
• Identify cost-saving opportunities.
• Optimize inventory levels to minimize carrying costs.

Ultimately, this leads to more efficient procurement and improved profitability.

Small Business Owners: The Big Picture

As a small business owner, you're wearing many hats. While you might not be directly involved in the day-to-day calculation of COGS, understanding the concept is essential for overall financial management and strategic planning.

A solid grasp of merchandise costs enables you to:

• Make informed decisions about pricing, marketing, and operations.
• Track profitability trends.
• Secure funding from investors or lenders.
• Plan for future growth.

Bottom line? Knowing your numbers is the key to long-term success.

So, whether you're a seasoned retailer, a meticulous bookkeeper, a savvy purchasing manager, or a driven small business owner, embracing merchandise cost management is a smart move. It's about gaining control, making informed decisions, and setting your business up for a thriving future.

Okay, so you're getting the hang of why merchandise cost matters. Now, let's move on to the nitty-gritty – calculating that cost. Ready to roll up your sleeves and dive into the numbers? It's simpler than you think, I promise!

Calculating COGS: A Step-by-Step Guide

Calculating Cost of Goods Sold (COGS) might seem daunting at first, but don't worry, we will break it down into manageable steps. Think of it as a recipe for understanding your business's profitability. We will walk through the basic formula, explore different inventory valuation methods, and tackle discounts, returns, and allowances. By the end of this section, you'll have a solid grasp of how to calculate COGS accurately.

The Basic COGS Formula

At its heart, COGS calculation is straightforward:

Starting Inventory + Purchases – Ending Inventory = COGS

Let's break down each component:

• Starting Inventory: The value of your inventory at the beginning of the accounting period (e.g., a month, quarter, or year). Think of it as what you have "on the shelves" ready to sell at the start.

• Purchases: The cost of new merchandise you acquired during the accounting period. Be sure to include all direct costs related to acquiring the goods, like shipping.

• Ending Inventory: The value of your inventory at the end of the accounting period. This is what's left on your shelves, still waiting to be sold.

Simple Example:

Imagine you start the month with \$5,000 worth of inventory. You purchase an additional \$2,000 of goods during the month. At the end of the month, you have \$3,000 of inventory remaining. Your COGS would be:

\$5,000 (Starting Inventory) + \$2,000 (Purchases) - \$3,000 (Ending Inventory) = \$4,000 (COGS)

This means it cost you \$4,000 to sell the goods you sold during that month.

Inventory Valuation Methods: Choosing What's Right for You

Deciding how to value your inventory is crucial. The method you choose directly impacts your COGS and, therefore, your reported profit. Here are the most common approaches:

FIFO (First-In, First-Out)

FIFO assumes that the first goods you purchased are the first ones you sell. This is a widely used and often intuitive method.

Example: You bought t-shirts in January for \$5 each and bought more in March for \$7 each. If you sell a t-shirt in April, FIFO assumes you sold one of the shirts you bought in January for \$5.

LIFO (Last-In, First-Out)

LIFO assumes the last goods you purchased are the first ones you sell. Note: LIFO is not permitted under International Financial Reporting Standards (IFRS). Its usage is primarily in the United States.

Example: Using the same t-shirt scenario, LIFO would assume you sold one of the shirts you bought in March for \$7.

Weighted Average

The weighted average method calculates the average cost of all goods available for sale during the period and uses that average to determine COGS.

Example: If you had 10 t-shirts at \$5 each and bought 10 more at \$7 each, your weighted average cost would be (\$50 + \$70) / 20 = \$6 per t-shirt.

Choosing a Method:

Each method has its advantages and disadvantages. FIFO is often considered the most straightforward and reflects the physical flow of goods for many businesses. LIFO can provide tax advantages in certain situations (but remember it's not allowed everywhere). The weighted average method smooths out cost fluctuations.

Important: Consistency is key. Once you choose a method, stick with it unless you have a very good reason to change (and always consult with your accountant).

Handling Discounts: Trade and Quantity

Discounts are your friend! But you need to account for them correctly when calculating COGS.

Trade Discounts

Trade discounts are price reductions offered by suppliers, usually based on industry or relationship. Always deduct these discounts from your purchase price before calculating COGS.

Example: A supplier offers you a 10% trade discount on a \$1,000 order. Your actual cost is \$900 (\$1,000 - 10%), and that is the figure you include in your "Purchases" for the COGS formula.

Quantity Discounts

Quantity discounts are price breaks for buying in bulk. Again, adjust your purchase price to reflect these discounts.

Example: You buy 100 widgets for \$10 each, but you get a 5% discount for ordering so many. Your effective cost per widget is \$9.50, and that’s what you'll use for your inventory valuation.

Accounting for Returns and Allowances

Sometimes, things don’t go as planned. Customers return merchandise, or you might offer a price allowance for damaged goods. These situations require adjustments to your COGS calculation.

• Returns: When a customer returns an item, reduce your COGS by the original cost of the returned item. You’re essentially "un-selling" the product.

• Allowances: If you grant a price reduction (allowance) instead of accepting a return, reduce your COGS by the amount of the allowance.

Example:

You sold a widget for \$20 (cost was \$12). The customer returns it. Reduce your COGS by \$12. If you instead offered a \$5 allowance because the widget was slightly damaged, reduce your COGS by \$5.

By following these steps and understanding the nuances of inventory valuation and discounts, you'll be well-equipped to calculate COGS accurately and gain valuable insights into your business's financial performance. Remember, this is a crucial metric for informed decision-making and long-term success!

Okay, so you're getting the hang of why merchandise cost matters.

Now, let's move on to the nitty-gritty – calculating that cost.

Ready to roll up your sleeves and dive into the numbers? It's simpler than you think, I promise!

Calculating COGS: A Step-by-Step Guide

Calculating Cost of Goods Sold (COGS) might seem daunting at first, but don't worry, we'll break it down into manageable steps.

Think of it as a recipe: follow the instructions, and you'll get accurate results.

Here's how to calculate COGS effectively:

Understand the COGS Formula

At its core, the COGS calculation is straightforward:

Beginning Inventory + Purchases – Ending Inventory = COGS

Beginning Inventory is the value of your merchandise at the start of the accounting period.

Purchases include the cost of all goods bought during that period, including freight and taxes.

Ending Inventory is the value of your merchandise at the end of the accounting period.

Choose Your Inventory Valuation Method

How you value your inventory significantly impacts your COGS calculation.

The most common methods are:

FIFO (First-In, First-Out)

FIFO assumes the first goods you purchased are the first ones you sold.

This method is best used for rapidly perishable goods and to provide a better estimate of the current value of your unsold inventory.

LIFO (Last-In, First-Out)

LIFO assumes the last goods you purchased are the first ones you sold.

This method has tax benefits in an inflationary environment, where LIFO-calculated profits would be lower than those calculated using FIFO.

Note: LIFO is not permitted under International Financial Reporting Standards (IFRS).

Weighted Average

The weighted average method calculates the average cost of all goods available for sale during the period.

This method can be used when stock items are so intermingled that it is impossible to know which item was sold first.

Account for Discounts

Discounts can significantly lower your merchandise cost.

Always account for discounts when calculating your purchases.

Here's how:

Trade Discounts

Trade discounts are reductions in the list price offered by suppliers.

Subtract these discounts directly from the purchase price.

For example, if you buy merchandise listed at $1,000 with a 10% trade discount, your purchase cost is $900.

Quantity Discounts

Quantity discounts are offered for buying in bulk.

Adjust your costs based on the discounted price per unit.

Handle Returns and Allowances

Returns and allowances also affect your COGS.

If a customer returns merchandise, or you provide a price reduction due to defects, adjust your COGS accordingly.

Reduce your COGS by the cost of the returned merchandise or the amount of the allowance.

Put It All Together: An Example

Let's say you start with $5,000 in inventory.

During the month, you purchase $10,000 worth of merchandise, but receive a $500 quantity discount.

At the end of the month, your ending inventory is $6,000.

Your COGS calculation would be:

$5,000 (Beginning Inventory) + $9,500 (Purchases after discount) – $6,000 (Ending Inventory) = $8,500

Your COGS for the month is $8,500.

By following these steps, you can accurately calculate your COGS and gain better control over your merchandise costs.

Remember to keep detailed records and choose an inventory valuation method that best suits your business.

Okay, so you're getting the hang of why merchandise cost matters. Now, let's move on to the nitty-gritty – calculating that cost. Ready to roll up your sleeves and dive into the numbers? It's simpler than you think, I promise!

Navigating the Regulatory Landscape

Calculating merchandise cost isn't just about knowing your profit margin; it's also about playing by the rules. Accounting principles and tax regulations are the guardrails that keep your financial reporting accurate and compliant. Don't worry, it's not as scary as it sounds! Let's break down the key things you need to know to stay on the right side of the regulatory landscape.

Understanding GAAP and Its Impact on COGS

GAAP, or Generally Accepted Accounting Principles, is the foundation of financial accounting in the United States. Think of it as the common language that accountants and businesses use to ensure transparency and consistency in financial reporting. GAAP dictates how COGS should be calculated and reported on your financial statements.

One of the core GAAP principles is the matching principle. This principle states that expenses should be recognized in the same period as the revenue they help generate. In the context of COGS, it means you need to match the cost of the goods you sell with the revenue you earn from those sales. This ensures that your income statement accurately reflects your profitability for each period.

GAAP also provides guidelines on inventory valuation methods, such as FIFO, LIFO, and weighted average cost. While these methods are discussed elsewhere, it's important to know they are a part of GAAP and are used to influence your reported Cost of Goods Sold.

IRS Guidelines and COGS: What You Need to Know

The IRS, or Internal Revenue Service, has its own set of rules when it comes to COGS, primarily for tax purposes. Accurately calculating and reporting your COGS is crucial for determining your taxable income and avoiding potential penalties.

The IRS allows businesses to deduct COGS from their gross income, which reduces their overall tax liability. However, they also scrutinize COGS calculations to ensure that businesses aren't overstating their costs to lower their taxes unfairly.

Here are a few key things to keep in mind when it comes to IRS guidelines and COGS:

• Record-Keeping is Key: The IRS requires businesses to maintain accurate and detailed records of all purchases, inventory levels, and sales. This documentation is essential for supporting your COGS calculation in case of an audit.

• Consistent Inventory Valuation: You need to use a consistent inventory valuation method (FIFO, LIFO, or weighted average) from year to year unless you obtain permission from the IRS to change methods. Consistency is crucial for avoiding red flags.

• Direct vs. Indirect Costs: The IRS distinguishes between direct costs (those directly related to producing or acquiring goods) and indirect costs (overhead expenses). Only direct costs can be included in COGS.

Navigating State Sales Tax Laws and Merchandise Costs

In addition to federal regulations, you also need to be aware of state sales tax laws that can impact your merchandise costs. Sales tax rules vary significantly from state to state, and it's crucial to understand how they apply to your business.

Here are a few key considerations when dealing with state sales tax laws:

• Nexus: You need to determine whether you have a nexus (a physical presence or significant economic connection) in a particular state. If you do, you're required to collect and remit sales tax in that state.

• Taxability of Products: Different states have different rules about which products are subject to sales tax. Some states may exempt certain types of merchandise, such as food or clothing.

• Sales Tax Rates: Sales tax rates also vary from state to state and even within different localities within a state. You need to stay up-to-date on the current sales tax rates in all the jurisdictions where you have a nexus.

Navigating the regulatory landscape surrounding merchandise costs can feel overwhelming, but it's a critical part of running a successful and compliant business. By understanding GAAP, IRS guidelines, and state sales tax laws, you can ensure that your COGS calculations are accurate, transparent, and in accordance with all applicable regulations. Don't be afraid to consult with a qualified accountant or tax professional to help you navigate these complexities and stay on the right track.

Okay, so you're getting the hang of why merchandise cost matters. Now, let's move on to the nitty-gritty – calculating that cost. Ready to roll up your sleeves and dive into the numbers? It's simpler than you think, I promise!

Collaborating with Key Stakeholders to Optimize Merchandise Costs

Merchandise cost management isn't a solo act.

It's a team sport!

To really nail down your COGS and boost your bottom line, you need to collaborate effectively with your suppliers and transportation partners.

Think of it as building strong relationships that benefit everyone involved.

Partnering with Suppliers for Better Pricing

Your suppliers are your first line of defense in controlling merchandise costs.

Building a strong relationship and negotiating effectively can lead to significant savings.

Strategies for Supplier Collaboration

• Negotiate Favorable Pricing: Don't be afraid to haggle! Request quotes from multiple suppliers and use that information to leverage better prices.

  • Consider bulk discounts for larger orders.
• Establish Clear Payment Terms: Negotiate extended payment terms to improve your cash flow.
• Explore Volume Discounts: Many suppliers offer discounted rates for purchasing in bulk. Evaluate whether this aligns with your inventory needs and storage capabilities.

• Value Beyond Price: Sometimes, the cheapest option isn't the best.

  • Consider quality, reliability, and supplier reputation.

• Build Long-Term Relationships: Suppliers are more likely to offer preferential treatment to long-term, reliable clients.

  • Regular communication and mutual respect are key!

Leveraging Transportation Companies for Cost-Effective Logistics

Shipping costs can significantly impact your merchandise costs.

Working with transportation companies to optimize your logistics can save you money.

Strategies for Transportation Collaboration

• Shop Around for the Best Rates: Don't settle for the first quote you receive. Compare rates from multiple carriers (FedEx, UPS, USPS, etc.) to find the most competitive option.
• Negotiate Shipping Rates: If you ship frequently, negotiate volume discounts with your preferred carriers.
• Optimize Shipping Methods: Consider different shipping options (e.g., ground, express) and choose the most cost-effective method based on delivery time requirements.
• Consolidate Shipments: Combine multiple orders into a single shipment to reduce shipping costs.
• Accurate Weight and Dimensions: Provide accurate weight and dimensions for your packages to avoid unexpected surcharges.
• Explore Regional Carriers: For local or regional deliveries, consider using smaller, regional carriers that may offer more competitive rates.
• Insurance Options: Look into the carrier's insurance programs and compare them to third-party options.

• Leverage Technology:

  • Utilize shipping software to compare rates, track shipments, and streamline the shipping process.

By collaborating with your suppliers and transportation partners, you can unlock opportunities to reduce merchandise costs and improve your overall profitability.

Okay, so you're getting the hang of why merchandise cost matters. Now, let's move on to the nitty-gritty – calculating that cost. Ready to roll up your sleeves and dive into the numbers? It's simpler than you think, I promise!

Common Mistakes to Avoid in COGS Calculation

Calculating your Cost of Goods Sold (COGS) accurately is critical, but it's also easy to stumble. Let's face it, accounting can be a bit of a minefield! Overlooking details or making simple errors can throw off your entire financial picture.

Don’t worry, though, we're here to spotlight some common pitfalls and give you practical tips to steer clear. Accuracy in COGS calculation is key to making informed business decisions and keeping your finances on track.

The Hidden Costs: Overlooking Relevant Expenses

One of the biggest mistakes is forgetting to include all the costs directly related to acquiring your merchandise. It’s easy to focus solely on the purchase price, but there's often more to the story.

What's often missed:

• Shipping and Freight: The cost to get the goods to your door!

• Sales Taxes (if applicable): Depends on jurisdiction, but important to include.

• Import Duties/Tariffs: Especially relevant if you source goods internationally.

• Insurance during transit: If you insure your shipment, that cost is part of COGS.

How to avoid it: Create a checklist of all possible costs associated with each purchase and ensure your accounting system captures them. Be diligent! Treat shipping like a part of the process, not an incidental extra.

Valuation Variation: Inconsistent Inventory Methods

Using consistent inventory valuation methods is crucial for accurately reflecting the flow of goods and their costs. Switching between methods mid-year is a recipe for disaster. It can skew your COGS and make it difficult to compare financial periods.

Common Methods:

• FIFO (First-In, First-Out): Assumes the first goods purchased are the first sold.

• LIFO (Last-In, First-Out): Assumes the last goods purchased are the first sold. (Note: Not permitted under IFRS)

• Weighted Average: Calculates the average cost of all available goods.

The Pitfall: Choosing a method is one thing, sticking to it is another!

How to avoid it: Choose an inventory valuation method that best suits your business and, most importantly, stick with it consistently. Document your choice and train your team accordingly. Consider consulting with an accountant to choose the most appropriate method for your business.

The Paper Trail Problem: Poor Record-Keeping

Accurate COGS calculation relies on solid record-keeping. If your receipts are stuffed in a shoebox (we've all been there!), it's going to be tough to accurately track costs. Poor record-keeping can lead to missed expenses and inaccurate inventory counts.

What happens with poor records:

• Difficulty matching purchase invoices to inventory.

• Missing documentation for returns or allowances.

• Inability to reconcile physical inventory with accounting records.

How to avoid it: Embrace technology! Use accounting software to track purchases, sales, and inventory movements. Scan and store receipts digitally. Conduct regular physical inventory counts to reconcile with your books. A little organization goes a long way!

The Discount Dilemma: Improper Handling of Discounts and Returns

Discounts and returns can significantly affect your COGS, but they are often mishandled. Not properly accounting for these items can lead to an overstatement of your COGS and an inaccurate picture of your profitability.

The issue: Failing to adjust COGS for discounts and returns.

How to avoid it:

• Trade Discounts: Record the net amount after discounts when initially recording the purchase.
• Purchase Returns: Reduce your COGS when you return merchandise to a supplier.
• Purchase Allowances: Reduce your COGS when you receive a price reduction from a supplier.

Remember, detailed records of all discounts and returns are essential!

The Missing Inventory: Inaccurate Inventory Counts

Let's be real, physical inventory counts aren't anyone's favorite task, but they are absolutely critical to calculating accurate COGS. If you’re relying on guesswork or outdated figures, your COGS will be way off.

Why it matters:

• Ending inventory directly impacts your COGS calculation.

• Inaccurate counts skew your understanding of actual inventory levels.

How to avoid it: Implement a regular inventory counting schedule, even if it's just spot checks. Use technology like barcode scanners to improve accuracy. Investigate any discrepancies between physical inventory and accounting records.

By avoiding these common mistakes, you'll be well on your way to calculating accurate COGS, making better business decisions, and keeping your financial house in order. Happy calculating!

So, there you have it! Finding the total cost of merchandise purchases doesn't have to be a headache. With these simple steps, you can easily keep track of your spending and make smarter business decisions. Now go forth and conquer your inventory!