Outline · coming soon
Inventory accounting for Shopify brands: a plain-English guide
How inventory and cost of goods sold should be recorded for a Shopify brand, and the common mistakes that hide your real margin.
Article outline. The full article is coming soon. [PLACEHOLDER — write the full draft]
Who this is for
- Shopify brands holding inventory, especially those also selling on Amazon or wholesale
Outline
1. Why Shopify payouts aren't revenue
- Payouts net out fees, refunds, discounts and gift cards
- How A2X splits each payout into its real parts
2. Inventory is an asset until it sells
- Recording purchases to inventory, not expenses
- When cost of goods sold is recognized
3. Costing methods in plain English
- Average cost vs. FIFO
- When the choice matters
4. Landed cost
- Freight, duties and fees belong in inventory cost
- What happens to margin when they're expensed instead
5. Cash vs. accrual for inventory brands
- What each shows, and when to switch
6. Common mistakes
- Expensing inventory purchases
- Ignoring 3PL counts
- Never reconciling inventory to the warehouse
7. Next step
- Link to the Trapped-Cash Calculator
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