You’re growing your eCommerce, CPG, or alcohol business, moving product, and watching sales roll in. But when you check your books, something feels off.
Your margins look great… but your bank account says otherwise.
You’re overpaying in taxes, but you’re not sure why.
Your CPA swears your books are in order… yet your inventory numbers never add up.
Sound familiar? You’re not alone.
Most small business CPAs in Austin are great at handling tax returns—but inventory accounting is a whole different game. If your CPA treats inventory like just another expense, you’re losing money and don’t even know it.
Let’s talk about why most CPAs mess this up and how to fix it before it costs you more.
The Problem: Your CPA Doesn’t Actually Understand Inventory Accounting
Not all CPAs are created equal. Most are used to working with service-based businesses—where tracking inventory isn’t even a thing. But in product-based businesses like eCommerce, wholesale, and retail, inventory isn’t just another line item—it’s your biggest asset.
Here’s where many CPAs get it wrong:
- They expense inventory immediately instead of tracking it as an asset.
- They don’t properly calculate Cost of Goods Sold (COGS), so your profits are either inflated or totally off.
- They ignore landed costs like shipping, customs, and storage, making it impossible to know what you’re actually paying per unit.
- They don’t adjust for shrinkage or deadstock, which means you might be paying taxes on inventory you can’t even sell.
The result? Your numbers are wrong, your profits are distorted, and you could be overpaying in taxes.
This is why so many eCommerce and product-based business owners run into cash flow issues. They’re making decisions based on bad accounting.
The Solution: Work with an Inventory-Savvy CPA
At Insogna CPA, one of the top CPA firms in Austin, Texas, we specialize in inventory accounting for businesses that sell physical products.
We don’t just “do your taxes.” We make sure your inventory numbers are accurate, optimized, and tax-efficient.
Here’s how we help:
1. We Track Inventory the Right Way
- Inventory is an asset, not an expense. We make sure your books reflect reality.
- We calculate COGS properly so you’re not overpaying in taxes or underestimating costs.
2. We Factor in Landed Costs & Shrinkage
- Shipping, warehousing, customs, and packaging all impact your actual cost per unit. We track it correctly.
- We adjust for lost, damaged, or expired inventory so you’re not paying taxes on inventory you can’t sell.
3. We Optimize Your Tax Strategy
- Choosing the right inventory valuation method (FIFO, LIFO, weighted average) can dramatically impact your tax bill. We help you pick the best one.
- We ensure IRS compliance so you stay audit-proof.
4. We Give You Real-Time Inventory Insights
- Need to know when to restock or slow down purchasing?
- Want to see how much cash is tied up in inventory?
We give you real-time financial visibility so you can plan ahead without playing guessing games.
Why This Matters: Better Accounting = More Profits & Less Stress
When your inventory accounting is done right, your business runs smoother.
- You’ll know your REAL profit margins—no more surprises.
- You’ll reduce your tax bill by properly tracking every deductible cost.
- You’ll manage cash flow better because you’ll know exactly how much inventory to keep on hand.
At Insogna CPA, a trusted CPA firm in Austin, Texas, we help product-based businesses clean up their inventory accounting, reduce tax liability, and improve cash flow.
Book a Consultation with an Inventory-Savvy CPA Today!
If your CPA doesn’t understand inventory accounting, isn’t tracking your COGS correctly, or leaves you guessing about your margins, it’s time for a change...
Let’s get your inventory accounting right—book a consultation with Insogna CPA today!