Track your COGS monthly, not yearly. Yes, it’s a pain. Yes, you’ll hate me. But doing it often catches problems early—like a material price spike or a lazy supplier. It’s the difference between a small fire and a raging inferno in your cash flow.
And if you use accounting software? Let it do the heavy lifting. Tools like QuickBooks or Xero calculate COGS automatically if you set up inventory right. Just double-check that it’s not counting your office snacks. (Those are emotional support inventory.)
So, go forth. Calculate your COGS. Feel like a financial wizard. And if you mess up? It’s fine. You can always fix it next month. Now, pour yourself another coffee—you earned it.
