Bookkeeping
Inventory accounting
Inventory tracked from purchase through sale for EU businesses holding or moving stock across member states, with cost of goods sold calculated properly under IFRS for SMEs or local GAAP instead of estimated at year end.
Bank reconciliation summary
Illustrative client · August 2026
EUR
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri, 28 Aug, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
Inventory across borders
A business holding stock in more than one EU member state, or shipping between them, needs inventory accounting that survives customs movements and currency differences, not a spreadsheet estimate. Finbryn applies a costing method consistently, whether FIFO, average cost or specific identification, and calculates cost of goods sold per period.
What we track
- A costing method chosen and applied consistently across the business
- Cost of goods sold calculated per period, matched to IFRS for SMEs or your local GAAP
- Inventory counts reconciled against the books at agreed intervals
- Slow-moving and obsolete stock flagged for a write-down decision
Where this connects to VAT
Moving goods between EU member states or importing from outside the bloc touches OSS, IOSS or standard VAT depending on the value and route, including the EUR 150 consignment cap under IOSS for low-value imports. We keep the inventory ledger consistent with the transaction data your registered local partner needs for that filing, rather than two separate stories that need reconciling later.
Stock moving across a border
A pallet that crosses from a warehouse in one member state to a customer in another can trigger a different VAT treatment depending on the route and value. We keep the inventory movement documented well enough that your registered local partner can assess the VAT position without chasing paperwork after the fact.
Questions
Frequently asked questions: Inventory accounting
Do you track inventory inside our accounting software or a separate system?
Where a lightweight add-on covers your volume we use it inside your existing software; higher-volume sellers get a dedicated inventory system connected to the books.
Can you fix cost of goods sold if it has been wrong for a while?
Yes, as part of a catch-up engagement, and we correct the inventory balance going forward.
Does moving stock between EU countries affect the accounting?
It can affect VAT treatment and valuation. We keep records consistent with what your registered local partner needs to assess that.
Which costing method do you use: FIFO, weighted average, or something else?
We use whichever method your business already applies consistently, most often weighted average or FIFO, and flag if a change would be worth discussing with your local GAAP or IFRS for SMEs adviser first. We would flag it directly with you before changing anything already in use.
How often is a physical count reconciled against the books?
We recommend at least a quarterly count reconciliation, more often for fast-moving stock, so book quantities do not drift silently from what is actually sitting on the shelf between one count and the next. A bigger gap than expected gets flagged to you right away, not buried in a report.
Do you track inventory inside QuickBooks or Xero, or a separate system?
Where a lightweight inventory add-on covers your volume we use it inside your existing software; for higher-volume sellers we connect a dedicated inventory system to the books.
Can you help if our cost of goods sold has been wrong for a while?
Yes. We can recalculate cost of goods sold for prior periods as part of a catch-up engagement and correct the inventory balance going forward.
How is inventory accounting priced?
Pricing for inventory accounting depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with inventory accounting?
Inventory accounting runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
Related services
- BookkeepingAccrual basis bookkeepingBooks kept on an accrual basis, matching income and expenses to the period they were earned or incurred, so reports reflect the real state of the business.
- BookkeepingFixed asset registerA running register of equipment, vehicles and other fixed assets, with depreciation calculated and posted on a set schedule so the balance sheet stays accurate.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.