Your P&L statement (also called an income statement) is a snapshot of your cpg accounting revenues and expenses over a given period of time. It shows how much money you’re making, where it’s coming from, and where it’s going. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.
How can Bob’s Bookkeepers assist with inventory management for CPG companies?
This includes the cost of the materials used to produce the product, as well as any direct labor or overhead costs. In addition, CPG companies must account for any indirect costs, such as packaging and shipping, that are included in the cost of goods sold. This can include sales tax, income tax, and payroll Accounts Payable Management taxes if you have employees. GAAP is a set of accounting rules standardizing financial reporting across US industries. As you get more retail partners for your brand, managing trade spend becomes more critical in your daily operations. You’ll have multiple partners—each with their own promotions, spend calendars, order volumes, and deductions.
- When you implement strong accounting practices, your products fly off the shelves and have sustained growth.
- Since each company receives thousands of lines of such deductions even a Fortune balance sheet 100 CPG company does not have the resources to check the validity of all chargebacks.
- The role of an accounting clerk entails overseeing financial data and the movement of funds in and out of company accounts.
- CPG companies must comply with tax regulations and accurately account for any taxes owed.
- Some accounting clerks even choose to pursue a career as certified bookkeepers or other advanced positions.
- To become an accounting clerk, you must be detail-oriented, organized, and capable of handling multiple tasks simultaneously, especially during peak periods, such as the end of fiscal quarters.
Accounting Clerk Job Description, Duties, and Responsibilities
In a more promising trend, the average yearly spend on accounting fees per consumer unit in the US has grown notably since 2020, crossing the $100 threshold for the first time in 2022 12. Both accounting clerks and accountants support the financial health of an organization, but their skill levels, financial expertise, and roles are notably different. This blog highlights the difference between an accounting clerk vs. an accountant, the skills required for each position, and how to choose the right role for your financial team. For any business, managing inventory isn’t just a number on a spreadsheet, and this is especially true for CPG businesses. If you don’t manage your inventory properly, it can lead to inaccurate financial data. For instance, you are overstocked one month, and you are in low inventory the next.
Accountant/Bookkeeper
For CPG companies, revenue recognition will be dictated by the shipping terms (i.e., FOB shipping destination or FOB shipping point). Familiarity with QuickBooks, MS Excel, and similar financial software is beneficial. Salaries vary based on location and experience, but generally range from $30,000 to $45,000 per year. Contact us today to see how you can improve your Trade contra asset account Promotion Management and accounting. Accuracy is crucial in this role, as mistakes can lead to significant financial discrepancies and legal issues.
The Stealth Cost Creeps Killing Your margins
- You can later use your experience to become a professional accountant specializing in one of the areas.
- Products like food and beverages, cosmetics, and cleaning products are consumer packaged goods.
- May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information.
- Finally, for a gourmet chocolate brand looking to expand internationally, I’d leverage financial data to guide your scaling efforts.
- When I work with clients on COGS, I Accounts Payable Management set up enterprise resource planning software.
Profit margins are thin in such a business model, and consumer preferences change faster than TikTok trends. CPG, aka Consumer Packaged Goods, includes products consumers use daily, such as food products, clothing, beauty items, and so on. To achieve this certification, candidates must have two years of professional bookkeeping experience, pass a four-part examination, and adhere to a code of ethics. You’ll have multiple partners — each with their own promotions, spend calendars, order volumes, and deductions.
