Looking back at our previous example, you would recognize your sale to the local store upon delivering those goods — not when they pay the invoice 30 days later. Without careful oversight, you might find your CPG brand is stuck with too much stock that ties up cash or not enough to meet customer demand. A CPG-specialized accountant analyzes your sales patterns, product turnover, supply chain costs, seasonal demand fluctuations, and storage expenses to pinpoint inefficiencies in how inventory is managed. Using this data, they help you adjust reorder points, ultimately improving cash flow and maximizing profitability. Decimal’s eCommerce bookkeeping services support their customers’ back-office technology needs, including inventory management, payment processing, and multi-channel support.

Drive Demand Through Innovation and Premium Products

• Finally, for a gourmet chocolate brand looking to expand internationally, I’d leverage financial data to guide your scaling efforts.
• To optimize your trade-spending strategies, however, you’ll need to dig a little deeper.
• A typical COA starts with balance sheet accounts (YTDassets and liabilities) and lists revenue and expense account numbers.
• Finaloop is an automated bookkeeping service built exclusively for eCommerce brands.

As a leader in the CPG sector, you face dynamic market conditions and evolving consumer demands. Many CPGs are increasing growth through innovation, boosting investments by over 50% and reducing time to market by approximately 30%. It’s crucial to reshape your pipeline to tackle affordability, offer clear value propositions against private labels and continue differentiating premium brands for higher-income consumers. I’ve seen brands face significant penalties simply because they missed key updates to these regulations.

Vividly Team

Inaccurate tracking often stems from manual processes that are prone to human error. Rising tariffs are disrupting supply chains, forcing CPG brands to rethink production and https://www.grupoeurekaconsultores.com/accountants-are-turning-away-work-hurting-firms/ financing strategies. Learn how reshoring, supplier diversification, and alternative funding options can help brands navigate trade uncertainty and stay competitive. Pilot offers an all-in-one finance solution for consumer goods and retail businesses including bookkeeping, CFO services, controller services, AR/AP, and tax.

• However, hiring a full-time finance team can be intimidating and expensive, and finding the right team that understands the nuances of eCommerce and CPG businesses can be even more challenging.
• However, the facility is outdated due to changes in technology and consumer preferences.
• Finding the right accounting or fractional CFO firm is crucial for a CPG brand’s financial success – find the right one for you that specializes in scaling eCommerce and consumer brands.
• Discover 7 actionaable tips on how to prepare for a trade show, including pre-planning and effective promotion strategies for success.
• Effective inventory management is critical for CPG businesses due to the perishable nature of many products.

Why is Accounting Critical for CPG Brands?

• I’ve spent years working with CPG brands, as an advisor and angel investor, and I’ve seen firsthand the transformation possible with a CPG business.
• Too often, brands produce based on past trends, but integrating real-time demand signals into your financial strategy can keep production aligned with market demand.
• Pitney Bowes said the move was in the best interest of the company and will help drive improved results in 2025.
• Without a healthy cash flow, you won’t be able to expand your product line, invest in marketing campaigns, or take advantage of new business opportunities.
• Some types of trade spend should be netted against revenue on your profit and loss (P&L) statement; other trade expenses impact operational costs.

Some types of trade spend should be netted against revenue on your profit and loss (P&L) statement; other trade expenses impact operational costs. Trade spending that should be recorded against revenue includes anything that reduces the price of the product, such as discounts, rebates, slotting fees, free products, deals, and coupons. In the marketing category, you might include demos, advertising, in-store displays, marketing campaigns, and contests. Lori Johnson-Engelman is a Senior Partner at CJBS, bringing over 20 years of experience in the restaurant, food service, and consumer packaged goods (CPG) industries. Lori’s unique value comes from her hands-on experience working in both restaurants and food service, giving her a firsthand understanding of the challenges faced by business owners and employees alike. This unique life experience allows her to connect with clients on a deeper level, providing practical insights and tailored solutions.

Our Head of Revenue, Christopher Dittmer, shares his thoughts on the evolving landscape of Expo West and the key trends that stood out in 2025. Learn how ledger account to build a finance team tailored to your growth stage with insights from Rainbow CFO. Discover key roles, milestones, and tips for maximizing finance relationships. Supply‑chain success isn’t about perfect vendors—it’s about shared visibility. When you and your suppliers see the same milestone timeline, delays turn into proactive conversations instead of last‑minute surprises, freight costs stay predictable, and trust deepens on both sides. This month’s Settle release includes 11 updates built to reduce manual work and give teams more control — including partial external payments, downloadable vendor reports, FX support, and mid-month inventory reporting.

Navigating CPG Financials: Understanding COGS and Retail Pricing

Our solutions are geared toward streamlining decision-making in real time. Armed with years of data working with startups like yours, we know what it takes to make a consumer packaged cpg accounting goods business successful. As your business grows, the key to financial success is knowing your cash inside and out.

By carefully managing these factors, CPG companies can maintain profitability and succeed in a highly competitive market. Learn how accurate AP forecasting and budgeting can improve cash flow management, optimize spending, and strengthen vendor relationships with our strategic guide. AVL drives mindful growth by bringing finance and accounting expertise to startups and high-growth companies to help them realize their goals.