Content
CPG accounting is the practice of financial management and reporting for a company involved in consumer packaged goods (CPG) production. It includes the accurate tracking and analysis of inventory, sales and cost of goods sold, forecasting and budgeting, cash flow management, pricing strategy, and other components necessary to maximize profitability. However, it’s more than just crunching numbers – it also requires an eye toward understanding consumer behavior and market trends so that companies can make informed decisions when it comes to their product lines.
It will help you keep your business ledger organized and reduce the work necessary to make sense of your finances. The problem with this accounting method for CPG companies is that it doesn’t track unpaid invoices, which makes it difficult to get a complete picture of your finances. You’ll be reporting to the Director of Accounting bookkeeping for startups and involved in all aspects of the accounting function, playing a key role in driving improvements and supporting an ERP migration. CPG is also a member of The Nitrous Effect™, a unique cross-company collaboration of senior specialists that solve complex brand challenges better and faster than the traditional holding company model.
How a Hypergrowth CPG Company Reduced Aged Receivables by 80% with a Simplified Accounting Function
The Infosys BPM
sales and fulfillment practice adopt a metrics-driven approach to help CPG companies enhance customer satisfaction, leading to top-line growth and inventory turns. It enables better asset utilization through continuous process improvements, enhanced visibility, and smooth interactions across departments. From the beginning, we’ve taken a strategic approach to business meeting production and content creation.
- Your team, from leadership to sales to finance and accounting, needs a deep understanding of the process and the importance of each step to enable proper, accurate treatment.
- From the beginning, we’ve taken a strategic approach to business meeting production and content creation.
- The balance sheet is not as exciting as the income statement, but it is where the accuracy in the income statement is derived.
- Returns and allowances can be estimated based on historical data, industry trends, and estimates of future returns/claims.
- To that end, invest in staff training on accounting, ERP and trade promotional management (TPM) systems.
Learn more about NetSuite’s ERP software solution for consumer packaged goods manufacturers and wholesale distributors. Based on those deals, you will see deductions occur from accounts receivable payments, sometimes without authorization. Expect your sales reps to acknowledge, review and understand any deductions that come through. Inventory management is another important accounting consideration for CPG companies. These companies typically have a large amount of inventory on hand, which can be costly to maintain. CPG companies must manage their inventory carefully to avoid overstocking or understocking.
Google Advertising Services
Drive collaboration and synergy between strategic, financial, and operational planning and ensure a seamless approach throughout procurement and production. Easily monitor performance, analyze accounts, and understand end-consumer behavior to detect trends and seize opportunities. Start with your sales reps and brokers, and then contact the customer’s AP department for proper routing directions. With Medius, fashion brands will have the tools they need to bring efficiency and accuracy into their AP processes – and at a pace even the fastest moving brands can appreciate. With pre-packaged and fully managed ERP connectors, ROI can be achieved quicker and with minimal training.
