Why You Want to Use Accrual Accounting for Inventory

Understanding the difference between cash vs accrual accounting for your inventory means the difference between skewed margins and accurate ones.
What you'll learn:
👉 The difference between cash and accrual accounting
👉 Why accrual basis accounting is generally preferred
👉 How to choose between them
◾◾◾◾◾◾◾
🔥 If you need help with your ecommerce accounting, click here to learn more about our ECOMMERCE ACCOUNTING SERVICES:
ledgergurus.com/ecommerce-acc...
◾◾◾◾◾◾
⬇️ MORE STUFF YOU SHOULD CHECK OUT ⬇️
** INVENTORY PLAYLIST: **
• Inventory & COGS
** BLOG: Cash vs. Accrual Accounting for Inventory **
ledgergurus.com/cash-vs-accru...
** BLOG: The Essential Guide to eCommerce Accounting & Choosing the Right Accountant **
ledgergurus.com/ecommerce-acc...
** BLOG: 3 Inventory Costing Methods & How To Choose One for Your Business **
ledgergurus.com/inventory-cos...
** Recording Cost of Goods Sold (COGS): Cash vs. Accrual Methods: **
• Recording Cost of Good...
** How to Create a Journal Entry for COGS in QBO: **
• How to Create a Journa...
** If you're interested in our ECOMMERCE ACCOUNTING SERVICES, click here to contact us: **
ledgergurus.com/ecommerce-acc...
◾◾◾◾◾◾◾
🧑‍💻 EMPLOYMENT OPPORTUNITIES:
We are always looking for awesome CPAs, accountants, and bookkeepers to join our team. If you're interested in working for LedgerGurus, check out our careers page: ledgergurus.breezy.hr/?...
◾◾◾◾◾◾
👋 SAY HI ON SOCIAL:
Website: ledgergurus.com/?...
Facebook: / ledgergurus
LinkedIn: / ledgergurus
Instagram: / ledgergurus
• Why You Want to Use Ac...
UA-cam Video URL: • Why You Want to Use Ac...
#cashvsaccrual #accrualaccounting #ledgergurus
Credits: Music at the end by "Company" by 2TECH-AUDIO | 2tech-audio.bandcamp.com

[@LedgerGurus]

To learn more about our services, click here: ledgergurus.com/contact-us/

[@halalaffirmations]

Can you make a vide on how to do this? step by step in Quickbooks for e-commerce? I appreciate it. Thank you

[@LedgerGurus]

Thanks for the suggestion! Feel free to reach out to us ledgergurus.com/contact-us/ if you need help setting it up for your business.

[@chattyjessi]

So if I am just now starting my business and am buying inventory but also selling personal items (Ebay seller here) would I just enter items into my inventory as I list them and then record the cost of goods when the item sells?

[@LedgerGurus]

Yes for cash basis accounting

[@Chandler890]

Doesn't irs mandate accrual base accounting for inventory base businesses?

[@LedgerGurus]

Not necessarily, you just need to pick a method and be consistent.