Ask the Accountant…
Question: A client has asked me about launching a company store. This is new to me, how do you suggest I manage the merchandise and the revenue?
I recently supported a distributor through this same scenario, and the biggest challenge was accounting.
They took on the responsibility of purchasing and owning over 100 SKUs for their client’s company store. We tried using QuickBooks Online (QBO) to manage the inventory, but the reporting tools were confusing, even with just a few items. I explored third-party apps, but most required entering orders and invoices through the app, not the order management system—creating unnecessary complexity.
Ultimately, we decided that tracking inventory outside of QBO (off the balance sheet) and having the CPA make quarterly or annual adjustments was the best path.
Beyond the accounting hurdles, there’s a bigger issue: liability. My client still holds branded merchandise they purchased six years ago—products that are now unusable because the logo changed and the client no longer wants them. The financial loss sits with the distributor.
My advice is to have the client purchase and own their own inventory. You can assist with tracking or storage if needed but avoid owning the product yourself. It protects your margins, simplifies your accounting, and limits your exposure if the client changes direction.
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