Inventory accounting software with stock and books on one ledger
Inventory accounting software values your stock and records its cost in the books, so what is on the shelf and what is on the balance sheet are the same figure. Cash Flow Inventory does it on one live ledger: every receipt, sale, transfer, production run and adjustment posts its own double-entry journal as it happens, valued by FIFO or weighted average.
The problems it solves
Stock value that disagrees with the books
When stock lives in one system and the accounts in another, the Inventory account drifts from the shelf. Someone re-keys totals at month-end and the gap is found weeks later, if at all.
Holding stock costs real money
Holding stock commonly costs 15–30% of its value a year — an indicative industry range (Cleverence, 2024). You cannot manage that cost if you do not know what the stock is worth on a given date.
Supplier bills handled by hand
Processing one supplier invoice costs best-in-class businesses $2.78 against $12.88 for the rest, and 3.1 days against 17.4 (Ardent Partners, 2024). Bills made from goods received cut the re-keying.
How inventory accounting works in Cash Flow Inventory
Start from your conversion date
Opening balances record what was in the bank, what customers owed, what you owed suppliers and what your stock was worth on one day; everything posts on that date and the review shows the books agree before you go live.
Choose a valuation method
Weighted average or FIFO, per business. Switching to FIFO revalues the stock on hand at its FIFO layers and posts the difference. LIFO is valued as weighted average, because IFRS does not allow it.
Let every document post
Goods received, bills, invoices, payments, transfers, adjustments, counts and production each write their own journal to the chart of accounts — no month-end re-keying.
Reconcile stock to the ledger
Stock at a date is valued by your method and reconciled to the Inventory account; the account reconciliations screen does the same for every balance-sheet account at a period end.
Close and lock the period
Work through the month-end checklist, sign each reconciliation as preparer and reviewer, then lock the books through a date so nothing can be posted into a closed period.
What you can do
Double-entry from every document
Automatic journals from sales, purchases, stock and production. Every posted line — entry, account, description, debit and credit — can be searched in Transactions.
FIFO or weighted average
One valuation method per business, applied to every movement. Cost of goods sold is taken at that cost when goods go out, and profit by item and gross profit per order use it.
Stock at any date
Inventory valuation shows what the stock on hand is worth on any date; Stock at a date ties it to the Inventory account so you can see the two agree.
Banks and reconciliation
Every cash, bank and wallet account with its balance; import a bank statement, reconcile its lines by hand or with auto-reconcile rules.
Period locks and year-end
Lock the books through a date, soft-close or close a month, choose how strict the checklist is, and lock a period once its sales-tax return is filed.
Tax returns
Sales tax rates by country, state or location; the tax summary and return worksheet shows output and input tax by rate, the net to pay and your country’s return boxes filled in.
Corrections without rewriting history
A posted journal is reversed, not edited; a wrong invoice is voided with a reason, never deleted. The audit trail shows who did what, and when, and document-number gaps are listed with what happened to each.
Financial statements
Profit and loss on an accrual or cash basis, balance sheet, cash flow statement, trial balance, general ledger and statements in the layout your business chose — IFRS, US GAAP or your own.
Books integrity checked nightly
A nightly check of the books against themselves, with Run now; ledger anomalies flag bills that look like duplicates, unusual amounts and sales below cost.
Where it is not the right fit
- Very large enterprises that need a global multi-company ERP rollout with on-premise hosting — this is a cloud product per business.
- A country that requires a certified e-invoice or fiscal device the app does not yet cover — the national e-invoice profiles are built to the published specification and are not certified.
- A business with no stock and no invoicing (only time-sheets, for example) may not need most of it.
Questions and answers
Software that values your stock and records its cost in the books: purchases raise the Inventory account, sales move their cost to cost of goods sold. In Cash Flow Inventory every stock document posts its own journal, so stock and the books stay on one ledger.
Yes. You choose weighted average or FIFO for the business. Switching to FIFO revalues the stock on hand at its FIFO layers and posts the difference. LIFO is valued as weighted average because IFRS does not allow it.
Open Stock at a date: it values the stock on hand by your method and reconciles it to the Inventory account. The account reconciliations screen then lets a preparer and a reviewer sign each balance-sheet account at the period end.
When goods go out on a sale, their cost is taken at the business’s valuation method and posted to cost of goods sold. Profit by item and gross profit per sales order show sales against that cost.
Yes. Lock the books through any date before today, soft-close or close each month, and choose whether a period closes only with a complete checklist. You can also lock a period once its sales-tax return is filed.
Posted entries are not edited in place. A journal is reversed and entered again, and an invoice is voided with a reason, so the audit trail keeps both the original and the correction.
Cash Flow Inventory keeps a full double-entry ledger of its own. Connectors for QuickBooks Online and Xero are tested against each provider’s sandbox, not yet proven with a live account.
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