Don’t get scared by the word “cleaning,” as the software is useful for any business. Financial reporting is necessary for any business, especially when the business has taken a loan or sought investment. The lenders and investors want correct revenue figures, sound financial projections, and a clean balance sheet. At Balanced Business Group, I’ve personally witnessed how Budgeting for Nonprofits empowering it is for founders to have an organized, data-driven approach. If you’re looking for expert guidance in setting up or analyzing these CPG brand KPIs, I’m here to help.

Manage deductions with sound strategies

Still, because of the fixated nature of the cost structure, they tend to get wiped out much quicker in economic downturns. Using this approach, COGS includes product costs and the variable costs incurred for fulfillment and operations. This gross vs net is another area where you can just get started – have the team meet to understand the process for managing discounts and allowances.

Strategic Business Planning

Cash is the lifeblood of any emerging brand, so if you’re tying up too much of it in unsold products, you’re stifling growth. A key to mastering trade spend management is ensuring your team is well-equipped with knowledge and consistent processes. Rigorous training for your team builds a foundation of expertise, enabling everyone to navigate the complexities of this field with confidence. Look for tools to efficiently manage the intricate details of receipts, invoices, and payments. This level of automation brings precision to the process and frees up your team to focus on more strategic aspects of trade spend management, making the entire operation more efficient and effective. Optimising pricing strategies for consumer packaged goods (CPG) is crucial for businesses to maximise profits cpg accounting and stay competitive in the market.

Challenges of Trade Spend Management:

Furthermore, we will discuss how Vividly can help CPG companies optimize their financial processes and stay on track for growth. 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. You can start the cash flow forecast today by managing and understanding what is going in and out of the company’s bank account.

The customer checks the item in to their warehouse as a different UOM, which results in a “shortage” of product received. You offer a trade deal in September at the retail level, and the distributor orders a higher quantity than usual to take advantage of the deal. Encourage collaboration by clearly identifying and explaining each cross-functional department’s role in the success of the business and explain why it matters.