If you have a small business that

  • produces physical goods and sell or
  •  purchase goods to resell,
  • you might have inventory to manage.

 How to record ending inventory?

If you just start out and don’t have a lot of sales and could manage your own inventory, you could track your inventory by hand and know the process. 

Steps to record year-end inventory:

  1. You count your finished products, raw materials, and products on hand at the end of the year.
  2. You write them down in a paper
  3. You record them in Excel: keep track of your inventory in excel makes it easy to calculate the cost of goods sold.

Please watch our YouTube video on the process.