5+ Best Accounting Software for Distribution Companies and Wholesale Businesses

accounting for distribution companies

You can try this amazing software risk-free for 30 days to see if it is the perfect fit for your wholesale distribution company. After calculating the cost of goods the company sold, the accounting department will record the sale of product. Accounting needs to document both the flow of assets and the revenues and expenses from the transaction. For example, say the company sells one unit of inventory with a cost of $100 to a customer for $150.

Recommendations for Choosing the Best Distribution Software

Work with a CPA who understands the intricate nature of how distribution companies manage cashflow, inventory, costs calculations, and more. Small businesses may have a distribution element to their business which requires managing suppliers and inventory. With many delays to the supply chain, customers are increasingly looking at differentiators https://www.bookstime.com/ such as delivery time before making their buying decisions. By integrating information between the sales staff and the warehouse, distribution systems are providing better visibility into the order fulfillment process. Find the best distribution software to manage day to day operations of your wholesale trade or distribution company.

Integrate ecommerce and multichannel sales.

It can also manage a variety of transactions, such as orders, transfers, receipts, inventory counts, quality settings, and more. The software adapts seamlessly to the growing needs of a business, offering customizable modules that can be tailored to specific operational requirements. This flexibility ensures that businesses can enhance their distribution efficiency without the need for constant software upgrades or switches. Wholesale distributors using NetSuite can track every transaction with instant updates. And support for multiple currencies means that expenses are paid in the currency in which they were incurred.

Priority ERP

The accounting department debits cash for $150, credits sales revenue for $150, debits cost of goods sold for $100, and credits the inventory account for $100. Distribution companies buy goods and resell them for a profit, usually accounting for distribution companies from business to business. Since distribution companies typically transfer a large amount of product in and out of their warehouses, it’s important for them to accurately account for the purchase, inventory and sales process.

accounting for distribution companies

  • It can help them to streamline routine tasks, such as keeping track of inventory levels, tracking sales and costs, and producing financial statements.
  • Distribution organizations typically have a purchasing department that issues purchase orders to vendors for items.
  • Wholesale distributors investing in new technology following the disruptions of the pandemic are in good company.
  • Our clients include entities with foreign-based parent companies and many closely held businesses with annual revenues from under $1 million to more than $100 million.
  • Your clients cannot fret about their payment information’s safety because, at FreshBooks, security is a priority.

Withum understands your business like no one else and is eager to put you in a position of strength. A distribution ERP software will be the sole software in use by the organization. This means that the enterprise solution will usually fill in the gaps with non-typical distribution features, such as CRM, payroll, and human resources.

You work hard for your money, so you deserve to get paid with no delay. Thanks to the innovative invoicing tool from FreshBooks, you can send invoices in just a few clicks. To get the most out of this feature, customize your invoice template with your business’s branding materials. Keep up-to-date on the latest insights and updates from the GAAP Dynamics’ team on all things accounting and auditing.

accounting for distribution companies

Exclusive or specialized distributors.

  • Cash just ends up in a pile and you have to do detective work to keep track of things.
  • Once you send your professional invoices, your clients have a few ways to conveniently pay their bills.
  • Wholesale distributors are an important part of “a living, dynamic and evolving ecosystem of partners” that EY encourages retail companies to cultivate.
  • By purchasing goods in bulk from manufacturers and distributing them to retailers, they make sure stores have products to sell while enabling manufacturers to focus on designing and building innovative products.
  • A distribution accounting system gives a much better view of costs and margins.

Infor CloudSuite Distribution – Best for Large Enterprises

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