Cost of Goods Sold (COGS) Software

Imagine knowing your true costs of production in real-time.

Up to the minute, accurate cost of manufacture calculations will enable you to make the decisions you need for your small business. Our software calculate your COGS and inventory valuations instantly for you.

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Automated COGS and COGM makes tax time a breeze 😮‍💨

Craftybase is a perpetual inventory system designed to provide you with accurate inventory and COGS calculations. Our system uses weighted rolling averages to calculate material usage and increases in inventory with precision: all you need to do is log your purchases and manufactures and Craftybase will tally everything for you. Our calculations are GAAP compliant, using IRS approved methods and are suitable for US based small manufacturers.

We offer a Schedule C guidance report that summarises all the numbers you need for your end of year tax filings.

Schedule C Report: Our Schedule C Guidance report makes tax time a breeze.
Automatic calculations: Enter your purchases and orders and Craftybase will do the rest.
Precise Unit Costs: Track your material usage costs to 4 decimal places for accurate and reliable COGS calculations.

Having a business that manufactures products with countless raw materials, Craftybase keeps us organized and helps us have a clear picture of the health of our business.

Bri Ussery

The Good Hippie

Frequently asked questions

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What does COGS stand for?

COGS is short for "Cost of Goods Sold" which in essence is the claimable direct expense (cost) of creating all products (goods) you have sold within the financial year. The IRS requires all small manufacturers to submit this information annually via a form called 1040, or "Schedule C".

How do I calculate cost of goods sold?

The IRS sets out how it wants you to calculate this figure via the Schedule C form. You’ll need to know 6 different COGS calculations and then enter them on separate lines to get your final tally:

1. Start of Year Material Inventory Value
2. Purchases (Less Personal Use)
3. Cost of External Labor
4. Materials & Supplies (these are not your materials in most small business cases as they are factored into 1 and 6)
5. Other Costs (Overheads)
6. End of Year Material Inventory Value

Craftybase will calculate the tallies you need for this filing.

See here for a guided detailed walkthrough on how to calculate COGS for a small business.

Take the stress out of inventory tracking, COGS and tax time by using Craftybase. Start your free trial today.

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