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Why You’re Likely Calculating COGS Wrong

Cost of goods sold: love it or hate it, it’s a big deal in the eCommerce world. To wrap up our three-part series on accounting and finances, we’re diving into all things COGS: the value of it, the implications it can have on your business, and how to figure it out without losing your mind.

Joining me today are Jamie McDonald, CEO of A2X Accounting, Scott Scharf of CatchingClouds.net and previous eCommerceFuel financial expert, and Brittany Brown, founder of LedgerGurus.com, who also specializes in eCommerce accounting for Quickbooks and Xero. No matter what phase of business you are in, this is an episode you literally can’t afford to miss. So listen in as we break down the good, the bad, and the ugly about your cost of goods sold.

You’ll learn:

  • How many actually get COGS right. (3:45)
  • What makes COGS so hard to track. (5:40)
  • The biggest culprits when calculating COGS. (7:20)
  • The steps to getting your COGS right. (12:40)
  • The recommended inventory tech tool. (20:20)
  • Getting COGS right on Amazon. (24:50)
  • How Scott uses Process Street in his business. 
  • How often you should be doing physical inventory counts. (31:50)

Subscribe: iTunes | Stitcher

(With your host Andrew Youderian of eCommerceFuel.com, Jamie McDonald of A2XAccounting.com, Scott Scharf of CatchingClouds.net, and Brittany Brown of LedgerGurus.com)

 

What Was Mentioned

 

Image credit to Steve Buissinne from Pixabay.



Andrew Youderian
Post by Andrew Youderian
Andrew is the founder of eCommerceFuel and has been building eCommerce businesses ever since gleefully leaving the corporate world in 2008.  Join him and 1,000+ vetted 7- and 8-figure store owners inside the eCommerceFuel Community.

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