Beginning inventory is the dollar value of all inventory held by a business at the start of an accounting period, and represents all the goods a business can put toward generating revenue. You can use the beginning inventory formula to better understand the value of your inventory at the start of a new accounting period.
To save you time, we have built a beginning inventory calculator just for you:
Ending inventory = 800 x $2 = $1600. New inventory = 1000 x $2 = $2000
Streamline your inventory and order management processes today.
Any change to beginning inventory compared with the previous period usually signals a shift in the business. For instance, decreasing beginning inventory could be a result of growing sales during the period, or it could be due to an issue in the supply chain or inventory management process. Increased beginning inventory could be due to a business ramping up stock before a busy period, or it could signal a downward trend in sales.
As with all business accounting, beginning inventory is a good way to better understand sales and operational trends for a business and make improvements to the business model based on the available data.
Save time and money by signing up for a free trial of QuickBooks Commerce today!
© 2020 Intuit Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, Proconnect and Mint are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
By accessing and using this page you agree to the Terms and Conditions. | Privacy Statement