Wholesale Distribution Accounting Services Inventory, Margins and Cash Under Control
Wholesale distribution accounting for importers, distributors and B2B suppliers. We track landed cost and inventory, reconcile purchase orders to receipts and bills, manage receivables and show gross margin by customer and product line.
- Landed costFreight and duty included
- Three way matchPO, receipt and bill
- Margin by customerNot just by product
Big Accountants provides wholesale distribution accounting to US distributors, importers and B2B suppliers. We keep inventory valued at true landed cost, match every purchase order to what arrived and what was billed, and keep receivables moving so growth does not drain your cash.
Distributors live on thin margins and large balance sheets. A few cents of unallocated freight per unit, a supplier overbilling for short shipments or a customer paying 30 days late can wipe out a month of profit. Our bookkeeping and controller teams build the routine that catches those leaks.
- Inventory at true landed cost
- Purchase orders matched to receipts and bills
- Gross margin by customer and product line
- Receivables aging and DSO
- Cash conversion cycle
Why Distributors Need Tight Receivables and Inventory
Most distributors sell on credit and carry large inventories. US trade data shows how much cash that ties up.
What Our Wholesale Distribution Accounting Includes
Built around purchasing, warehousing and selling on credit.
Inventory accounting
Perpetual inventory reconciled to counts and the general ledger.
Landed cost allocation
Freight, duties, brokerage and insurance allocated to inventory.
Three way matching
Purchase orders matched to receiving and supplier bills before payment.
Accounts payable
Supplier bills, early payment discounts and payment runs managed.
Accounts receivable
Invoicing, credit terms, collections follow up and DSO reporting.
Customer and product margin
Gross margin by customer, product line and sales rep.
Rebates and allowances
Vendor rebates and customer allowances tracked and accrued.
Cash conversion cycle
Inventory, receivable and payable days tracked every month.
What Goes Into the Landed Cost of Inventory
Leaving these out of inventory overstates your margin when stock sells and understates it later.
| Cost | Included in landed cost? | Notes |
|---|---|---|
| Supplier purchase price | Yes | Net of discounts taken |
| Inbound freight and shipping | Yes | Allocated by weight, volume or value |
| Customs duties and tariffs | Yes | Including brokerage fees |
| Insurance in transit | Yes | Where you bear the risk |
| Outbound shipping to customers | No | Recorded as a selling or fulfillment cost |
| Warehouse rent and staff | Depends | Treatment varies with tax rules and business size |
Some businesses must capitalize additional costs into inventory under the uniform capitalization rules, with an exemption for smaller businesses that meet the gross receipts test. Your tax preparer can confirm what applies to you. See 26 U.S.C. 263A.
Distribution Accounting Problems We Fix
If any of these sound familiar, your margin and cash are at risk.
- Freight and duty expensed instead of added to inventory
- Supplier bills paid without checking what arrived
- Inventory in the system never matches the warehouse
- No margin report by customer
- Rebates earned but never claimed
- Receivables growing faster than sales
Wholesale KPIs We Report Every Month
The measures that decide whether a distributor grows profitably.
Gross margin by customer
What each account keeps after landed product cost.
(Sales - Landed COGS) / Sales
Inventory turnover
How many times stock sells through in a year.
COGS / Average inventory
Days sales outstanding
How long customers take to pay.
Accounts receivable / Credit sales x Days
Days payable outstanding
How long you take to pay suppliers.
Accounts payable / COGS x Days
Cash conversion cycle
Days cash is tied up in operations.
Inventory days + DSO - DPO
Fill rate
Share of ordered units shipped complete.
Units shipped / Units ordered
How We Set Up Distribution Accounting
A structured start that fixes inventory first, then a steady monthly close.
- Weeks 1 to 2
Assess
Inventory system, purchasing and receivables processes reviewed.
- Weeks 2 to 4
Rebuild
Landed cost method set, inventory reconciled to counts and the ledger.
- Weeks 4 to 6
Automate
Three way matching, bill pay and collections workflows in place.
- Every month
Close and report
Inventory, margin and cash conversion reported after each close.
Wholesale Distribution Accounting Pricing
Price depends on SKU count, purchase and sales order volume, the number of warehouses and how much payables and receivables work you need. Every quote is fixed in writing after a free call, and our pricing is competitive. See how our pricing models work.
Ongoing distribution books
Inventory, AP, AR and reporting for an agreed fee.
Inventory projects
Landed cost setup or an inventory cleanup at a set price.
Advice on demand
Margin, pricing and cash questions as they arise.
More Services for Distributors
Accounts payable
Bills coded, approved and paid on time.
Accounts receivable
Invoicing, collections and DSO.
Controller services
Month end close and internal controls.
Virtual CFO
Forecasts, budgets and KPIs.
See all our accounting and bookkeeping services for US businesses.
Wholesale Distribution Accounting FAQs
What does wholesale distribution accounting include?
Wholesale distribution accounting covers inventory valuation at landed cost, purchase order matching, supplier payments, customer invoicing and collections, rebates and allowances, and reporting on margin, inventory turnover and the cash conversion cycle.
What is landed cost?
Landed cost is the full cost of getting inventory into your warehouse: the purchase price plus inbound freight, duties, brokerage and insurance. Using landed cost gives you an accurate gross margin when the stock is sold.
What is three way matching?
Three way matching compares the purchase order, the receiving record and the supplier invoice before a bill is paid. It stops you paying for goods that were short shipped, damaged or priced incorrectly.
Which inventory and accounting systems do you support?
We work in QuickBooks Online, QuickBooks Desktop, Xero and Zoho Books, alongside the inventory and order management systems connected to them.
Can you show profit by customer?
Yes. We report gross margin by customer, product line and sales rep, so you can see which accounts are worth growing and which need new pricing or terms.
Do you manage collections for distributors?
Yes. Our accounts receivable team sends invoices, applies payments and follows up on overdue accounts in your name, and reports DSO every month.
How much does distribution accounting cost?
Cost depends on SKU count, order volume, warehouses and the payables and receivables work needed. We offer a competitive fixed monthly fee, hourly billing or per task pricing, quoted in writing after a free call.
Do uniform capitalization rules apply to my business?
Some businesses must capitalize certain indirect costs into inventory, while smaller businesses that meet the gross receipts test are generally exempt. Your tax preparer, or our tax team, can confirm your position.
Protect Your Margin and Your Cash
Tell us your products, volume and systems. We will recommend a setup and send a clear written quote.