At any moment, executives or team members may assets = liabilities + equity own public or private stock in any of the third party companies we mention. I personally can tell you, they’ve done a great job for our companies, including Calm.com. From Fintech to Agtech and most industries in between, Kruze’s team has worked with a wide range of companies.

Do we actively work on a cash receipts and disbursements forecast?

• Products like food and beverages, cosmetics, and cleaning products are consumer packaged goods.
• In terms of disputing deductions, it’s important be both diligent and timely.
• Our ad hoc services also allow us to adapt quickly to any immediate needs or changes in your business.
• Since opening our doors in 2004, we’ve sat across the table from people just like you – helping them transform their businesses and finances from overwhelming to energizing.
• A chart of accounts is a categorization of your company’s general ledger for both the Income Statement and Balance Sheet.

Even well-known companies continuously invest in advertising to increase brand recognition and stimulate sales. Despite experiencing a slowdown in growth over recent years, the consumer packaged goods industry is one of the largest industry sectors in North America. The sector contributed approximately $2 trillion to U.S. gross domestic product (GDP) in 2023, according to a report by the Consumer Brands Association. Consumer packaged goods (CPG) are everyday products that consumers use frequently and often replenish.

Financial Support Tailored For You

• Building a startup is hard enough – but layering on the complex regulatory environment and difficult purchasing cycles of the healthcare industry adds a whole new level of complexity.
• It allows businesses to access expert services while reducing costs and improving efficiency.
• Let’s use gyms and fitness centers during COVID-19 as an example — a business model with a high degree of operating leverage.
• Consumer packaged goods (CPG) are everyday products that consumers use frequently and often replenish.
• By understanding your P&L, balance sheet, and cash flow, you’ll have a clearer picture of your brand’s financial health.

Your business needs a firm that can help mitigate risk and fraud by Retail Accounting segregating duties to protect from unauthorized spend. Now, you have a 20% contribution margin, which could be higher but not bad. That leaves you with 10% of revenue to give to all the employees, insurance, rent, benefits, etc, to land at an ‘ok’ net income of 10%. Think if you have 60% margins (pretty good) and a 2.5x MER (pretty good). That means COGS has already eaten 40% of your revenue; at 2.5x MER, that’s another 40% of your P&L.

• Promotional activities involve multiple moving parts, and recording each one accurately is essential to properly accounting for profits and losses — not to mention building a better trade-spend strategy.
• They include your cash on hand, inventory information, equipment, accounts receivable, and other types of business transactions and assets.
• With real-time data on sales figures, inventory levels, and cash flow, you can make informed business decisions with confidence.
• Enhances finance insights, cash flow management and supplier relationships through timely payments.

Accounting Services Built for High Growth Brands…and Brands That Strive To Be

CPG accounting is the practice of financial management and reporting for a company involved in consumer packaged goods (CPG) production. It includes the accurate tracking and analysis of inventory, sales and cost of goods sold, forecasting and budgeting, cash flow management, pricing strategy, and other components necessary to maximize profitability. However, it’s more than just crunching numbers – it also requires an eye toward understanding consumer behavior and market trends so that companies can make informed decisions when it comes to their product lines. By anticipating consumer needs and staying ahead of competitors, CPG accounting helps businesses stay ahead of the game. Although your business must maintain both profitability and positive cash flow to be successful in the long term, at times, one may be more essential than the other, depending on the circumstances.

We specialize in all aspects of the CPG business including bookkeeping, trade promotion management, logistics, supply chain, and production planning. Over the years, we have seen CPG clients experience a number of challenges, including tracking ongoing trade activity. Another challenge is clearly understanding ROI on trade spend and how it compares to projected lift in sales. We have also seen CPG companies fail to hold adequate reserves to deal with deductions accruing from the prior year. Many also experience difficulty keeping up with large distributors and retailers that have robust accounting and buyer teams. In CPG companies of every size, trade deductions are often the second largest line item on the P&L, as well as the most difficult area to manage.

A proficient bookkeeper can ensure accurate and timely financial records, providing founders with valuable insights into their business’s performance. With historical data available, CPG owners can identify trends, assess financial health, and set future goals more effectively. At Unloop, we specialize in accounting for inventory based CPG Brands starting at $399/month. CPG businesses often cpg accounting face deductions from retailers and distributors, such as chargebacks, slotting fees, and promotions. Properly estimating and allocating these deductions to the correct accounting categories is essential for accurate financial reporting. Neglecting this can lead to distorted profitability analysis and challenges in expense management.

Personnel & fixed costs are a small portion of the P & L, as we just said, so you should be looking to leverage the fixed costs as much as possible since there isn’t much to begin with. Those rent and machinery payments don’t go away – but the revenue does, and you’re screwed. Let’s use gyms and fitness centers during COVID-19 as an example — a business model with a high degree of operating leverage. So, USPS tends to hike rates yearly, but that doesn’t mean your cost to produce that lotion increased by 3%.