Food Recruit’s Post

What is Opening Stock and Closing Stock Opening Stock:- Opening stock refers to the value of the inventory or goods that a business has at the beginning of an accounting period. Unsold goods from the previous period that are carried over into the new period. Formula of Opening Stock:- Opening Stock = Cost of Goods Sold (COGS) + Closing Stock - Purchase Closing Stock:- Closing stock refers to the value of unsold Goods or Stock items that a business has on hand at the end of an accounting period. Formula of Closing Stock:- Closing Stock = Opening stock + Purchase - Cost of Goods Sold (COGS)

Learn about Inventory & Accounting Understanding inventory accounting methods is crucial for businesses to manage costs effectively: 1️⃣ FIFO: Cost based on oldest inventory 2️⃣ LIFO: Cost based on recent inventory 3️⃣ Avg cost: Cost based on average price 4️⃣ Specific identification: Cost based on exact purchase cost Learn about inventory components: 1️⃣ Raw materials 2️⃣ Work in process 3️⃣ Finished goods Follow the formula for inventory management: Beginning inventory + new purchases - COGS = ending inventory Know the journal entries: 1️⃣ Purchasing inventory 2️⃣ Converting inventory to COGS Key accounts to track: ▪️ Cost of goods sold ▪️ Freight in/out ▪️ Inventory spoilage ▪️ FOB shipping terms ▪️ Goods on consignment Stay informed in #Accounting and #Finance for efficient business operations.

Advanced Stocktaking offers comprehensive stocktaking services to support you this EOFY. An EOFY stocktake is a critical task for small businesses, but many don't have the time or staff available for it. This is where we step in and handle it all for you. EOFY slots are filling up, so book our team now and approach the end of the finance calendar with confidence. . . . #AdvancedStocktaking #stocktake #stocktaking #stocktakingservices #inventorymanagement #stockmanagement #stockaudits #stockcount #accuracy #independentstocktaking

Advanced Stocktaking offers comprehensive stocktaking services to support you this EOFY. An EOFY stocktake is a critical task for small businesses, but many don't have the time or staff available for it. This is where we step in and handle it all for you. EOFY slots are filling up, so book our team now and approach the end of the finance calendar with confidence. . . . #AdvancedStocktaking #stocktake #stocktaking #stocktakingservices #inventorymanagement #stockmanagement #stockaudits #stockcount #accuracy #independentstocktaking

FIFO vs LIFO Two different inventory accounting methods ➡️ FIFO stands for First in First Out Under FIFO, the oldest inventory items are sold first. ⬅️ LIFO stands for Last In First Out Under LIFO, the newest inventory items are sold first. • What is the impact on financial statements? The choice of inventory accounting method can impact a company's profitability, tax liability, and inventory valuation. The choice of inventory accounting method also affects the accuracy of financial statements, as different methods can lead to different results for cost of goods sold and inventory valuation. For example, in an inflationary environment, {using FIFO will} : - Increase the value of stocks & Increase the GP & Decrease COGS. {Using LIFO Will} : - Decrease the value of stocks & Decrease the GP & Increase COGS. • Conclusion In my manufacturing experience, WAC has been the method we used the most as it smoothens the difference in prices that you can find from different suppliers, different lot sizes, and different market conditions. #Financial_Management #CMA

What is FIFO? FIFO stands for "First In, First Out" and is an accounting principle and inventory management method that assumes the first items purchased or produced are sold or used first.

The Australian Tax Office (ATO) requires businesses to undertake a stocktake to demonstrate the value of trading stock at the end of the income year. This involves determining the physical quantities of stock on hand and assigning a value to each item. Advanced Stocktaking can do this for you, saving you the time and hassle of organising a stocktake yourself. DM to get a quote and be ready for EOFY. . . . #AdvancedStocktaking #stocktake #stocktaking #stocktakingservices #inventorymanagement #stockmanagement #stockaudits #stockcount #independentstocktaking #EOFY

Advanced Stocktaking offers comprehensive stocktaking services to support you this EOFY. An EOFY stocktake is a critical task for small businesses, but many don't have the time or staff available for it. This is where we step in and handle it all for you. EOFY slots are filling up, so book our team now and approach the end of the finance calendar with confidence. . . . #AdvancedStocktaking #stocktake #stocktaking #stocktakingservices #inventorymanagement #stockmanagement #stockaudits #stockcount #accuracy #independentstocktaking

The beginning balance for Jun of the inventory account was $27,500, the ending balance for Jun is $28,750, and $128,900 of materials were used during the month. The Materials were purchased are: #accounting #finance #cogs #costing #costaccounting #financialanalysis #financemanager #procurement

What is Stock take? For me it's not just observing the stock of client but it's more than learning the way how to interact with the client staff, observing there control's, there processes especially when they are in the manufacturing side. It gives you an opportunity to broaden your exposure. Yesterday i had an experience to attend the stock take and i got in depth understanding of there processes, there control's and observed the physical stock to ensure they are available in good condition and as per the stock sheet description same stock is available, 3rd party stock has been properly separated and documented, obsolete stock has been properly separated and after that ensure it's recorded on lower of cost and nrv in book's. Fixed asset verification there condition, there existence and cross verification from fixed asset list to physical availability and vice versa Cash Count to ensure currency note's from different denomination are separately accounted for and recorded in cash count sheet. And most importantly at the end taking the signature and stamp of authorized person responsible for that head.