Category: Accounting

Once you’ve honestly calculated your cost of goods — with delivery, duties, and everything the product picked up on its way to the warehouse — the next question comes up: what price should you actually set? And here most entrepreneurs do the same thing: they take the purchase price, add the usual “plus 30%”, and off they go. Or they look at what the shop next door charges and match it.

The problem is that a price set by eye, or as “purchase plus a standard markup”, almost always loses somewhere. On some products you underearn, on others you become uncompetitive. And when you have hundreds of products, keeping all this in your head is no longer possible.

Why a single markup on everything is a trap

Imagine you put +30% on the entire range. Sounds simple and fair. But products differ:

• one turns over fast and sells itself — you can earn less per unit but make it up on volume;
• another sits for months taking up space — it needs to bring more from each sale;
• on a third you face strong competition, and +30% makes you the most expensive of all;
• and on an imported product, delivery and duties have already eaten part of the margin — so +30% on the purchase price actually means far less real profit.

A single markup doesn’t see these differences. It errs equally in both directions: somewhere you lose profit, somewhere you lose customers.

A price calculated from cost

It makes more sense to set the price not out of thin air but from cost — by a clear rule. In ERPJS, the price in a price list is calculated by a formula: it takes a base (most often the cost), applies your markup as a percentage, adds a fixed amount if needed — and rounds the result.

The base doesn’t have to be cost. You can calculate the price from the last purchase price, or build off another price list (for example, the retail price is the wholesale price plus a certain percentage). You set the rule once, and the system calculates prices by it for the whole list of products.

The key point: different products can be calculated differently. That’s what price groups are for — you combine products into categories and set a markup for each. Electronics one, accessories another, consumables a third. Each group lives by its own formula, but all of it sits in one transparent mechanism.

A price list for each customer

The same product often sells at different prices depending on the customer: one for wholesale, another for retail. In ERPJS, a price list is tied to the customer’s record. When you issue an invoice to that customer, the prices are pulled from their price list automatically — nothing to pick by hand. A wholesaler gets wholesale prices, a retail buyer gets retail ones, because it’s determined by who the customer is.

And you can keep as many price lists as you need — a separate wholesale one, retail one, one for the marketplace (where you also need to factor in the commission). Each has its own set of prices, validity period, and currency.

A price list in currency: the rate changes, and you do nothing

This matters especially for those who buy in foreign currency. If a price list is kept in a currency — say, euros — the local price doesn’t freeze. When you issue a document in the local currency, the system takes the euro price and converts it at the rate on that document’s date.

The rate jumped — you don’t rewrite price tags or run any recalculations. The euro price stays the same, and the local equivalent is always current as of the day of sale. For an importer, this removes a whole layer of manual work: the price is tied to the currency you actually incur your costs in.

When the cost changes — recalculation under control

A different situation is when the base itself changes. You bought a new batch at a higher price, the cost went up, and you want the prices in the list to reflect it. Then you run a recalculation: the system goes through the price lists and recalculates prices by your formulas.

This is a separate, deliberate action, not something that happens on its own. And that’s right: prices are too sensitive a thing to change behind your back. You decide when to update the price list, and you do it in one operation across the whole list.

Tidy price tags and discounts

A small thing that affects perception: after calculation, a price rarely comes out even. So there’s rounding — to any convenient step: to 99, to 50 cents, to the nearest ten.

Discounts work the same way — and they too are tied to the customer. Their record holds a discount table, and when you issue an invoice the discounts are applied automatically, with no manual intervention. The discount itself can be set on a specific product, product group, or brand and limited to a period. This is handy for promotions: the discount applies on the right dates and to the right list, rather than being edited by hand across the whole catalog.

The bottom line

A price is a decision, not a guess. Cost gives you the floor below which there’s no sense in selling. The formula in the price list gives the mechanics. A currency price list removes the exchange-rate question, and recalculation stays where it belongs — in your hands.

Instead of “plus thirty percent and whatever happens”, you get prices that rest on real numbers and update when you want them to.

How does ERPJS calculate the sales price?

The price in a price list is calculated by a formula: it takes a base (most often the cost, but it can also be the last purchase price or another price list), applies your markup as a percentage, adds a fixed amount if needed, and rounds the result. For different product categories you can set different formulas through price groups.

Can I have different prices for wholesale and retail?

Yes. You keep several price lists — for example, wholesale, retail, and one for the marketplace. A price list is tied to the customer’s record: when you issue an invoice to them, the prices are pulled from their list automatically. A wholesaler gets wholesale prices, a retail buyer gets retail ones, with nothing to select by hand.

What about prices if the list is in currency and the rate changes?

If the price list is kept in a currency (for example, euros), then when you issue a document in the local currency the price is converted at the rate on the document’s date. The rate changed — nothing to rewrite: the currency price is the same, and the local equivalent is always current as of the day of sale.

Are prices recalculated automatically when the cost changes?

No, and that’s by design. When the cost has changed and you want to update prices, you run a recalculation in one operation across the whole price list. Prices don’t change behind your back — you decide when to update the list.

Can prices be rounded to tidy figures?

Yes. There’s rounding to any step — to 99, to 50 cents, to the nearest ten. The price calculated by the formula is automatically brought to a convenient form.

Are discounts and promotions supported?

Yes. Discounts are tied to the customer’s record and applied automatically when you issue an invoice. The discount itself can be set on a specific product, product group, or brand and limited to a period — handy for promotions, when a discount should apply on the right dates and to the right list of products.

Ask ten business owners how much they make on a product, and nine will calculate it like this: selling price minus purchase price. It’s fast, simple, and almost always wrong. Some understate the cost and think they earn more than they do. Others go the opposite way, trying to cram everything into the cost and drowning in accounting that gives nothing back. Let’s break down what goes into the cost of goods and what doesn’t, and where the clear line runs.

Cost of goods and margin are different things

First, let’s separate two concepts that are constantly confused.

Cost of goods is how much it cost you to have this product ready to sell on the shelf. Not just the supplier’s price, but everything it took for the product to end up with you.

Gross margin is revenue minus cost of goods. What’s left “on top” after you’ve covered the cost of the product itself.

And there’s a third level — net profit: that’s gross margin minus all the other costs of the business (rent, salaries, advertising, commissions, delivery to customers). It’s calculated not per product, but for the business as a whole — in the profit and loss statement (P&L).

Most mistakes happen because these three levels get mixed into one pile. And when they’re mixed, profit is easy to confuse with an illusion — we wrote about that in «Profit or Illusion?».

Trap #1: “price minus purchase” understates the cost

The most common mistake is treating only what you paid the supplier as the cost. But on the way to your warehouse, the product picks up expenses:

• delivery from the supplier;
• duties and customs clearance (if it’s an import);
• broker services, cargo insurance;
• loading and unloading.

All of this is part of the cost of goods, because without these expenses the product simply wouldn’t be on your shelf. If you ignore them, you see an understated cost and an overstated margin. On cheap items the difference is invisible, but on imports, delivery and duties can “eat” most of the imagined profit.

In ERPJS such additional costs are distributed across the batch automatically, forming the real cost of each unit. And when the product is sold, the system takes its cost using FIFO — from the oldest batches, not “the last price at random.” This matters: if you bought the same product three times at different prices, FIFO shows what the exact unit you just sold actually cost.

Trap #2: don’t cram everything into the cost

Having realized that cost is more than the supplier’s price, many people swing to the other extreme: let’s count absolutely everything in the cost of goods. Office electricity, the water cooler, the accountant’s salary, rent, advertising. The logic seems right — these are expenses too. But it’s a mistake, and here’s why.

First, these costs aren’t tied to a specific product. The water cooler doesn’t make your batch of smartphones more expensive. These are costs of the business existing at all, not of this product.

Second, they can’t be allocated correctly. How much electricity “falls on” one T-shirt sold? Any number here is made up. And accounting built on made-up numbers is worse than no accounting, because it creates an illusion of precision.

Third, the weight of these costs is tiny while the hassle is large. You’ll spend a heap of time and effort, make mistakes — and your gross margin will become “more accurate” by pennies. Meanwhile the general costs are already fully captured in the P&L. The game isn’t worth the candle.

There’s a subtlety for manufacturing. Direct energy — the electricity a machine “ate” while making this exact part — is a genuine production cost, and it belongs in the product cost. But general workshop lighting does not; that’s the same “water cooler,” only on the production floor. The difference is one thing: is the cost directly tied to a unit of product, or is it just the backdrop the whole business runs against?

A separate story is administrative costs. People especially love to “hang” them on the product, even though they have nothing to do with it. The director’s salary doesn’t belong in product cost — neither by common sense nor by accounting standards.

A simple line: the moment of receipt into the warehouse

To avoid agonizing every time, remember one rule. The boundary of cost is the moment the product entered your warehouse.

• Everything that happened before that moment (purchase, delivery, duties, customs clearance, and for manufacturing — materials and labor) is the cost of goods.
• Everything that happens after the product is already “yours” (storage, marketplace commissions, delivery to the customer, acquiring fees, advertising, equipment depreciation, admin costs) is a period expense. It goes into the P&L, not the cost.

This boundary settles 90% of the disputes. You don’t have to wonder every time “is this cost or not?” — just ask: did it happen before the warehouse or after?

That’s exactly how accounting works in ERPJS. For each product you see the gross margin — revenue minus the real cost (with delivery and duties, by FIFO). And all the costs of running the business — commissions, delivery to customers, rent, salaries — the system collects in the P&L, where the real net profit is visible. Two levels, each in its place. By the way, from this same cost the system can automatically form the selling price — so the markup isn’t pulled “out of thin air.”

A small practical note: if allocating some pre-warehouse cost precisely is disproportionately hard (and the benefit is tiny) — don’t agonize, put it into a separate expense line. Common sense here matters more than accounting fussiness.

Look where the weight is: inventory revaluation

Here’s the main idea. The energy you spend distributing pennies of lighting is better directed where almost no one looks — because the weight there is many times greater. The best example is inventory revaluation to market value.

While you’re splitting a dollar of lightbulbs across a thousand SKUs, a batch may be sitting in your warehouse that’s really worth tens of thousands less than recorded in the books. The model is outdated, a newer one appeared, prices fell — yet the product still “hangs” at the old cost. Your warehouse is “on paper” worth more than it really is, which means profit is overstated too. That’s where the real weight is — and that’s where the mistake is expensive.

The correct approach (and the one accounting standards require) is to carry inventory at the lower of two values: cost or real market value. If the market dropped, the product is written down, and the difference is recognized as a loss immediately rather than hidden until the moment of sale. One such revaluation does more for an honest picture than a year of meticulously distributing utility pennies.

Conclusion

The cost of goods is neither “the purchase price” nor “all the costs of the business.” It’s a clearly defined value: everything it took to bring the product to your warehouse — and not a penny more. The rest of the costs live in the P&L, where they belong.

When these levels are separated correctly, you finally see the real picture: what the gross margin is on each product and what the real net profit is for the business. ERPJS calculates cost by FIFO including delivery and duties, shows the margin on each item, and brings the full profit picture together in the P&L — without manual spreadsheets and without made-up allocations.

Want to see the real margin on your products? Request a demo — we’ll show you.

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FAQ

What goes into the cost of goods?

Everything it took to bring the product to your warehouse: the supplier’s price, delivery, duties and customs clearance, broker services, cargo insurance. For manufacturing — materials and production costs. Anything that happened after receipt into the warehouse no longer belongs in the cost.

Do marketplace commissions and delivery to the customer go into the cost of goods?

No. These are selling expenses — they arise after the product is already yours. They belong in the profit and loss statement (P&L), not in the cost of goods. They don’t go into the cost, and they shouldn’t.

Why is “selling price minus purchase price” the wrong margin?

Because the purchase price isn’t the whole cost. If you ignore delivery, duties, and other costs of bringing the product to the warehouse, the cost is understated and the margin overstated. It’s especially noticeable on imports, where logistics and duties can be substantial.

Can I count rent, salaries, and electricity in the cost of goods?

You shouldn’t. These costs aren’t tied to a specific product, can’t be allocated correctly to a unit, and complicate accounting with no real benefit. General and administrative costs are accounted for in the P&L for the business as a whole.

Which costing method does ERPJS use?

FIFO — when sold, the product is written off at the cost of the oldest batches. This shows the real cost of the exact unit sold, even if you purchased the product several times at different prices.

What is inventory revaluation and why does it matter?

It’s writing the product down to its real market value when that value falls below cost (the product became outdated, prices dropped). Accounting standards require carrying inventory at the lower of two values — cost or market value — so as not to overstate the value of the warehouse and the profit.

You bought equipment, a car, or furniture for your business — and you treat it as a one-time expense that’s already behind you. Then you calculate profit as if that purchase no longer affects your money. This is one of the most expensive mistakes small businesses make. Let’s break down what fixed asset accounting is, why without it your profit is an illusion, and how to stop calculating depreciation by hand in Excel.

What is fixed asset accounting in plain words?

Fixed assets are everything a business buys not to resell, but to use for a long time: equipment, vehicles, furniture, computers, tools, premises. Unlike goods you buy and sell within a week, a fixed asset works for years and wears out gradually.

Fixed asset accounting is a system that answers four questions:

• What you own (a full list of assets with values and responsible people);
• What it’s worth now after wear and tear;
• How fast it wears out and when it will need replacing;
• What it actually costs your business every month.

The last point is the most important. And it’s the one most often ignored.

The hidden trap: why your profit is smaller than it looks

Imagine an entrepreneur who bought a car for $12,000 to deliver orders. The car will serve about 5 years, then needs replacing. That means it «wears out» by roughly $200 a month ($12,000 ÷ 60 months).

Now suppose the business brings in «$1,000 a month». The owner is happy: a thousand dollars of profit. But that’s not true. $200 of that thousand isn’t profit — it’s the car wearing out. The real result is closer to $800.

And that’s not the whole problem. If the owner spends the full «thousand» every month, then five years later something unpleasant happens: the car dies and there’s no money for a new one. Where did it go? It was never there — the owner was quietly eating their own capital, taking $200 of someone else’s money for their own profit every month.

This is what depreciation does: it spreads the asset’s cost across its entire service life, so that every month you see the real cost of working with that equipment. Without it:

• you overestimate profitability and your business margin;
• you make decisions (raise salaries, lower prices, take a loan) based on inflated numbers;
• you don’t set aside money to replace assets — and one day you’re left with no money and no equipment.

Fixed asset accounting isn’t bureaucracy for the accountant. It’s a tool that shows where your real money is. (We touched on this logic in «Profit or Illusion?» — fixed assets are the same effect, just stretched over years.)

Why doesn’t Excel work for fixed asset accounting?

While you have two or three assets, a spreadsheet still holds up. But at a dozen objects the problems begin:

• Manual depreciation calculation. Every month you have to remember to calculate wear for each object, by the right method, for the right period. One formula error and all the following numbers are wrong.
• Easy to forget. Excel won’t remind you it’s time to record depreciation. Miss a month and the books drift.
• No link to accounting. You calculated wear in a table — but the journal entries have to be made separately, by hand, all over again. Double work and a double chance of mistakes.
• Two bases diverge. Accounting depreciation and tax depreciation are calculated by different rules. In Excel that means two parallel tables that are almost impossible to keep in sync.
• Problems during audits and inspections. When the tax office or an investor asks for an asset card with full history, you won’t assemble it quickly from a spreadsheet.

Excel doesn’t know what a «fixed asset» is. To it, these are just numbers in cells. An accounting system knows.

What does a fixed asset card look like in the system?

In ERPJS each asset is a separate card holding everything about the object:

• Inventory number — unique, so no object gets lost or duplicated;
• Name and description — what the object is;
• Initial cost and purchase date;
• Commissioning date — depreciation counts from here;
• Category and type — for grouping and the correct accounting accounts;
• Department and responsible person — who’s accountable and where the asset is;
• Supplier and warranty — where to turn if something breaks.

This isn’t just a reference list. Each card is linked to the books, to depreciation, and to reports — all in one place.

How does automatic depreciation work?

Instead of manual formulas, the system calculates wear itself. You choose a depreciation method for each asset category, and from there the system computes the amount and immediately creates the accounting entries (charges wear to expenses and accumulates it), updates the residual value, and logs the operation in the journal.

ERPJS supports three methods:

1. Straight-line — the asset wears evenly, the same amount each period. The most common and simplest.
2. Declining balance (accelerated) — more wear at the start of service, less later. Suited to equipment that becomes obsolete quickly.
3. 100% at once — the entire cost is written off in one go. Convenient for inexpensive objects.

The accrual period is flexible — month, quarter, or year, whatever suits you. Instead of manual formulas in Excel, the system calculates wear itself and maintains it for each object without you doing the math.

Why two parallel models — accounting and tax?

Here’s a function most simple solutions don’t have. The real wear of equipment and tax depreciation are different things. Tax rules often dictate their own terms and rates that don’t match how the asset actually wears out.

ERPJS lets you run two parallel accounting models at the same time: one shows the real economic picture (for management decisions), the other the tax view (for reporting). The same asset, two perspectives, no duplication across tables.

For the business this means you see both true profitability and a correct tax base — without two separate Excel files that forever diverge.

How to record commissioning and disposal?

Commissioning is a separate action: you fix the date the asset starts working, and the system automatically makes the right entries (moving the value from capital investments to fixed assets).

Disposal — when an asset is sold, written off, or liquidated — is handled by a document. The system writes off the accumulated wear and residual value itself, and in case of a sale records the revenue. All with correct entries, no manual posting.

Every such operation goes into the journal — you always have a full history for each object: when it was bought, commissioned, how much was depreciated, and when and how it was disposed of.

Conclusion

Fixed assets are where small businesses most often fool themselves: counting as profit the money that is actually equipment wearing out. Fixed asset accounting restores an honest picture: how much you really earn, what working with your assets costs, and when to set money aside for replacement.

ERPJS automates the whole routine — from the asset card and depreciation calculation by three methods to accounting entries and two parallel accounting models. Instead of manual spreadsheets you get a system that counts real money.

Want to see how this works on your assets? Request a demo — we’ll show you.

Frequently Asked Questions

What are fixed assets in plain words?

They’re everything a business buys for the long term, not for resale: equipment, vehicles, furniture, computers, tools. They work for years and wear out gradually, so their cost isn’t written off at once but spread across the whole service life through depreciation.

Why does depreciation affect profit if the money is already spent?

Because the asset wears out and will eventually need replacing. If you ignore monthly wear, you overestimate profit and eat your capital without noticing. Depreciation shows the true cost of working with an asset and the real profitability of the business.

Which depreciation methods does ERPJS support?

Three: straight-line (even wear), declining balance (accelerated, more at the start), and 100% at once (for inexpensive objects). The method is chosen per asset category, the period — month, quarter, or year.

Can accounting and tax depreciation be kept separately?

Yes. ERPJS runs two parallel accounting models at the same time for one asset — management (real economics) and tax (by tax rules). No need for two separate tables that drift apart.

Does the system calculate depreciation automatically?

Yes. You choose a method for each asset category, and the system calculates the wear amount, creates the accounting entries, and updates the residual value itself — without manual formulas in Excel.

Is ERPJS suitable for small business?

Yes. Fixed asset accounting in ERPJS is designed for small and medium business with a standard depreciation scheme. For large companies with complex analytics, some functions are tailored to the specific case.

A small business owner realises that Excel is no longer enough. The paper profit does not match reality, the warehouse lives its own life, every report takes an hour of manual work. It is time to choose an ERP system. He opens Google, reads 5-7 comparisons — and gets lost. Some articles are vendor advertisements. Others are academic checklists with 30 criteria, where “intuitive UI” sits next to “microservices architecture”.

This post is an attempt to give a different format. Not 30 criteria, but 10 specific questions the owner should ask themselves and the vendor before signing a contract. If the answer to at least 3 of them is “I don’t know” or the vendor avoids a direct answer — that is a signal to stop and look at more options.

The questions are split into three blocks: first to yourself (about your own business), then to the vendor (about the product), and finally — about the economics. The sequence matters: without understanding your own processes, every demo looks equally beautiful.

Where to start — choosing a vendor or analysing your business?

Start with the analysis of your own business. Without understanding your own processes, every demo looks equally beautiful. Before looking at vendors, answer questions 1-3 below for yourself. Otherwise the demo will charm you with design, and later it will turn out that a key module is missing or “will be in the next version”.

Block 1. Questions to ask yourself

1. Which processes do we automate first?

Short answer: One process or several? Doing everything at once is the classic mistake that sinks ERP projects.

A small business usually has 2-4 key processes: warehouse, sales, finance, production, service, rental. Choosing which of them to automate first determines not only the ERP modules but also the budget and timeline.

Risk signal: “we automate everything at once in 1 month”. That does not happen in practice. The adequate approach is phase 1 (one or two critical processes, basic accounting), phase 2 and onwards — gradual expansion.

2. How many users today and in 2 years?

Short answer: 3, 10, 30 or 100? Different systems are optimised for different sizes, and the price “explodes” differently as you grow.

The number of users determines not only the licensing model (per user, per module, flat) but also the architectural requirements. Most vendors have non-linear pricing — extra modules and paid options kick in at certain thresholds. Some (ERPJS included) keep a directly proportional per-user price without tariff changes.

Ask the vendor: “Show me the price calculation for my current headcount and for +20 users in 2 years”. If the difference is more than 4x for a 4x growth — that is a non-linear model, take it into account.

Risk signal: the vendor does not ask about planned growth. This means the price may “explode” later, when you are already locked in.

3. Which 3-5 reports does the owner want to see daily?

Short answer: Name 3-5 reports you want to see daily. If you cannot — that is the first task before choosing an ERP.

Concrete examples of owner reports: margin by product group, working capital, top-10 debtors, cash flow for the week, sales by manager. Every business has its own set.

Important nuance: do not ask the vendor “do you have such a report?” — even if they do, yours will be different (different cuts, different filters). Ask differently: request a demo of how data is entered for your key report — you will see whether the interface has the dimensions, analytics, and objects you need. If data is entered in the right structure, building the report is a matter of technique (1-3 days of work). If not, the report will not appear even if the vendor promises: there will be gaps and inaccuracies.

Risk signal: the vendor brags about “200+ ready reports”. Mostly these are standard accounting reports that a small business owner does not need. Ask about your specific report.

Block 2. Questions to ask the vendor

4. Does the system cover my critical processes without customisation?

Short answer: If yes — standard path. If no — how flexibly can it be modified? How much will modification cost?

No ERP system covers 100% of a specific business’s needs out of the box. The question is what percentage it covers and how the rest is built up. In the ERP world there are two extremes: “monolithic” systems with closed code (modifications only through the vendor, often expensive) and flexible platforms with open architecture.

Risk signal: “yes, we will modify anything you want” without an estimate of hours and cost. Ask in writing: “here is our scenario X, how many hours and how much will it cost?”

5. SaaS or on-premise — which model is critical for you?

Short answer: SaaS — quick to start, minimum IT costs, but data is with the vendor. On-premise — full control and security, but you need your own server.

Some vendors offer only one of the two — this is a limitation. If the vendor offers only SaaS, you are forever dependent on their server, prices, and existence. If only on-premise, you have no easy way to “try with minimal cost”.

The most flexible option is when both are available, and the client can start with SaaS and move to on-premise when it becomes critical, or vice versa. Or start with on-premise from the beginning if the business is serious and data is critical. Details — in the post Open Source Code in ERPJS: SaaS or On-Premise With Control.

Risk signal: the vendor says “SaaS is the only right way, on-premise is the last century” OR vice versa “on-premise means security, SaaS is not good”. Both models have their place.

6. Is the business logic code open? What happens if the vendor shuts down?

Short answer: On-premise installation alone does not guarantee that you can work without the vendor — most systems use online licence keys with limited validity. Ask separately: what happens to data access if the key stops being renewed.

This question seems theoretical until it becomes real. SaaS services for business shut down regularly. What happens next depends on the combination of three factors: SaaS or on-premise, open or closed code, and how licensing works:

• SaaS, closed code: complete stop. Data can theoretically be taken as a DB backup, but without a UI it is useless. The result — months of chaos and retraining.
• On-premise with online key, closed code: when the key stops renewing, the system may not start at all. Without updates or support — even if you manage to start it, any problem stays unresolved.
• On-premise with open business logic and an offline licence fallback: data access is preserved even without the vendor (e.g. basic read-only mode or a limited single-user mode). That is enough not to lose your data and to have time to calmly prepare a migration to another system. This is not “full freedom”, but a real plan B in case of vendor problems.

Risk signal: the vendor says “we have closed code and no on-premise” — full dependence. Or there is on-premise, but “the key is online, nothing starts without renewal” — in practice still dependence, just hidden. Ask specifically: “what happens to my data access if we stop the cooperation tomorrow?”

7. Which integrations are already ready, and how much will those built for you cost?

Short answer: There is no vendor who has ALL integrations ready. The important question is which 1-2 integrations are critical for your business: are they already there, or do they need to be built from scratch.

Critically important for most small businesses:

• Bank-client — for any business with banking operations
• Postal/delivery providers (Nova Poshta, Ukrposhta) — for trade with shipping (more about Nova Poshta integration)
• Fiscal cash register (e.g. Checkbox) — for retail
• Marketplaces (Rozetka, Prom) — for online trade

If your key service is already integrated, that is 1-2 weeks saved on implementation. If not, count it: developer hours × rate + testing time.

Risk signal: the vendor says “we integrate with anything” without a list of what is ready. Ask specifically: “what integration do you already have working? Can you show an example from a real client?” The honest reality: no vendor covers the whole market. The sensible strategy is several genuinely working integrations plus willingness to build your case.

Block 3. Project economics questions

8. How much does the first year really cost?

Short answer: Not “the licence”, but “licence + implementation + customisation + training”. Often implementation equals 1-2 annual licences.

Three cost items often hidden at the first consultation:

1. Implementation — system setup for your processes, data migration. Can range from a few thousand to tens of thousands depending on scope.
2. Customisation — module modifications, specific reports, non-standard logic. Usually billed hourly.
3. User training — real time that has to be allocated. Without training the system sits idle.

How is the price calculated: per user, per module, or flat? This also affects the total cost as you grow.

Risk signal: “price only after consultation” with no upper bound. An adequate vendor can name at least a range (“from X to Y for a configuration of a similar business”).

9. How long from contract to the moment I actually start working in the system?

Short answer: Do not confuse “implementation duration” with “time to start working”. An adequate vendor breaks the project into phases: basic accounting starts in 2-4 weeks, full functionality is built up over the next 3-12 months.

The integrator’s pure time for the standard scope of a small business is indeed around 2-4 weeks. In reality the project stretches over months, but not because of the vendor — because of organisational issues on the client side: data preparation for migration, user testing, decision-making inside the team.

It is better to start using the system in limited functionality and grow, than to spend 6 months setting up an “ideal” system before the first login. Early use is also a chance to understand what is really needed (often what seems important at the start turns out differently in real work).

The risk signal is not “2 weeks”, but:

• The vendor promises to launch the entire functionality in a month — this will be a hack job.
• The vendor does not break the project into phases — the process will get stuck (“a bit more polishing, a bit more”).

An adequate vendor will say: “Basic accounting — 2-4 weeks to start. Then module X — a month, module Y — two, in total roughly 4-6 months to full scope depending on your pace.”

10. What does exit from the system look like if I decide to migrate?

Short answer: Can I take my data? In what format? Can I keep using it if I stop paying the vendor?

This is a question few vendors like to answer directly — and that is itself a signal. In SaaS with closed code, exit is largely a myth. A DB backup in your hands without a UI is useless; manual export of registers to Excel one by one takes weeks and does not give a full picture.

In on-premise with open code and an offline licence fallback, the system is physically yours and basic data access remains even without the vendor. Not necessarily “everything as before with all users at once”, but enough so that you do not lose your data and have time to calmly prepare a migration to another system.

Risk signal: evasive answer to a direct exit question.

What to do if you spot 3+ red flags?

Do not sign the contract “while the discount lasts”. Time pressure is a standard trick owners fall for under emotion: “well, the discount is here, let’s hurry”. The reality — the system will be with you for at least 3-5 years, a week or two for extra questions changes nothing.

Concrete steps:

1. Ask for written answers to disputed questions — not “in chat with a consultant”, but in the commercial proposal.
2. Look at at least 2-3 other systems for comparison. The goal is not to pick the cheapest, but to understand the market and calibrate prices and timelines.
3. Ask for references and contact existing clients yourself — by phone, not through an organised meeting under the vendor’s supervision. Ask specifically: what hurts after a year of use, what had to be reworked, did the initial promises about timelines and budget hold up.

How do these 10 questions look in ERPJS?

Briefly, block by block — so you can compare with other vendors:

• Business processes: document flow (sales, purchases, warehouse, production, rental, service), financial and management accounting, project management. CRM exists, but it is not our main strength.
• SaaS and on-premise — both options from the start, no contract re-signing. You can begin with SaaS and switch to on-premise, or start with on-premise right away.
• Reports. Standard set (trial balance, cash flow, sales) is included. Real approach — first capture the data correctly, then build the reports your business actually needs. Usually 1-3 days of work per report.
• Integrations. Ready: Nova Poshta (waybill in 20 seconds), bank-client (statement import out of the box; outbound payments — done in custom projects), Checkbox (fiscal register), Rozetka and Prom marketplaces. EDI and a few others — not yet, built per client case with transparent hour estimates.
• Business logic code is open in on-premise — you can hire a third-party JS developer. Details: Open Source Code in ERPJS.
• Data access if the cooperation ends. Even without an active licence key the client retains basic access: one user with full read+write mode, others — read-only. This is not “business as usual”, but a guarantee that you will not lose your data even if something happens to us.
• Timeline: basic accounting starts in 2-4 weeks, full functionality — 3-12 months depending on scope. We work in phases.
• Pricing: SaaS — on the pricing page, no “hidden until consultation”. On-premise — after a short consultation on configuration.

Frequently Asked Questions

A retail store owner rarely wakes up thinking “I need to implement an ERP”. The decision usually comes through pain: two times in a row, you didn’t have enough stock for a customer’s order. Or inventory revealed a 50,000 UAH shortage. Or your manager spent the third hour reconciling supplier invoices.

This post lists 5 concrete signs that your store has outgrown Excel and needs accounting software. If even 2 of them apply to you — this isn’t “someday later”, it’s “right now”.

1. Constant stock balance discrepancies

Typical situation: 15 units physically in stock. Excel says 20. Customer orders 18. Manager says “we have it” → takes the order → can’t ship → customer leaves for a competitor.

Discrepancies appear for three reasons:

• Not every write-off is entered into the spreadsheet immediately (especially when shop-floor and warehouse are different people)
• Re-entering data introduces typos and SKU mix-ups
• Excel isn’t linked to the POS — sold but not deducted, you find out a week later

What accounting software gives you: stock balances update automatically on every movement — sale, return, transfer, write-off. Manager sees actual quantity in real time. Reservation under an order — the system locks units already promised to a customer, so the “have it → don’t have it” mistake disappears.

More on tracking goods from receiving to sale in our post.

2. You don’t know where the goods disappear to

Inventory revealed a 30-unit shortage — where did they go? If your answer is “I don’t know”, that’s the second sign. In retail, goods disappear through four channels:

• Write-offs (defects, expired) — without proper accounting, written off “from memory”
• Theft (customers or staff) — needs tracking to identify
• Receiving errors (supplier sent 5 units short — wasn’t checked)
• Sales errors (cashier sold without putting it through the system)

Without separating these channels — you only see the integrated hole at month-end.

What accounting software gives you: separate documents for each movement type (Write-off, Inventory Count, Receiving, Sale). Each has its own report. Three months in, you see: “75% of losses come from write-offs of supplier N’s defects. Time to change suppliers”.

3. Do you know what sells best?

Test: name your top-5 products by profit for last month. Not by revenue — by margin profit (revenue minus cost). Not “approximately” — specific items with numbers.

If your answer is “I’d have to calculate” — that’s the third sign. You don’t have sales analytics.

Without analytics:

• You purchase blindly — what “seems to work”
• You hold non-selling goods on the shelf (frozen capital)
• You discount items that were already in shortage
• You miss that one item has a 5% margin while the one next to it has 35%

What accounting software gives you: ABC analysis (top by revenue, profit, turnover), margin by groups, sales dynamics over a period. In ERPJS — a “Sales per day / week / month” report filtered by category, supplier, sales point.

How it looks in practice — in the post “How an AI Agent Found a Sales Anomaly in 5 Seconds”: a real example of analytics surfacing the non-obvious.

4. How much time goes into supplier reconciliation?

Case: a supplier sends an invoice with 47 line items. You need to check: do prices match the agreement, does quantity match the order, are there items you didn’t order.

If done by hand (printout + Excel + calculator) — that’s three hours of your manager’s time. Calculation errors weekly. Item-code errors too.

What accounting software gives you: the supplier order is created in the system. When the invoice arrives, its data is entered (or imported from Excel/EDI), the system automatically compares to the order and shows discrepancies — by price, quantity, new items. Reconciliation time drops from 3 hours to 15 minutes.

5. How much routine does your manager have?

Check: how much time per week these tasks take your manager:

• Inventory counts (full or partial)
• Supplier reconciliations
• Preparing accounting reports
• Issuing invoices to customers
• Creating return documents

If the total is more than 8 hours a week — that’s a full work day that can be automated. In retail, these tasks are very templated: “generate a monthly sales report in the accountant’s format” should be one button, not two hours of Excel formatting.

What accounting software gives you: all standard documents are generated automatically from primary data. Instead of “producing paperwork”, the manager focuses on what they’re really for — customer negotiations, orders, analysis.

What accounting software gives you — in one list

If you boil down 5 signs to one outcome — accounting software for a retail store gives:

• ✅ Real-time stock balances — no discrepancies between POS and warehouse
• ✅ Movement control — visibility into where and why goods disappear
• ✅ Automatic sales reports — top items, margins, dynamics by day
• ✅ Fast supplier reconciliation — the system finds discrepancies for you
• ✅ Time saved on routine — the manager focuses on the business, not on calculations

ERPJS for retail stores

ERPJS is an ERP system for small business that gives a retail store 5 integrated modules:

• Inventory — receiving, transfers, counts, write-offs
• Sales & POS — POS interface, receipts, fiscalization via Checkbox
• Suppliers — orders, invoice reconciliation, price history
• Analytics & reports — ABC, margins, sales dynamics
• Hardware integration — barcode scanners, fiscal printers, scales

These modules work as one system — a sale at the POS automatically deducts from stock, posts to the cash book, records the margin for analytics. No need to shuffle data between tools.

When accounting software isn’t needed

Honestly: if your store is 1 location with 30-50 SKUs and 1-2 sales per day, full accounting software is over-engineering. Excel + a simple button-based POS will do.

Accounting software becomes worthwhile when:

• 100+ SKUs in the catalog
• 2+ employees handling goods
• 1+ sales channel besides the physical store (website, marketplace)
• Regular supplier reconciliations (at least weekly)
• You need to know margin per item, not just “overall profit”

If at least 3 of 5 — time to implement. A thematically close post on 5 signs your warehouse accounting isn’t working covers warehouse specifics; this one is about the store as a whole.

Frequently asked questions

Excel stock balances don’t match reality. The salesperson promises a customer an item that’s no longer in stock. Inventory again reveals a 10% shortage. If this sounds familiar — the problem isn’t people, it’s the accounting system. Proper product accounting isn’t just a spreadsheet with quantities, it’s a connected process from receipt to sale.

In this article, we’ll break down how product accounting should work in a real system: what documents you need, what FIFO is, how inventory counts, reservations, and serial numbers work — and how to transition from Excel.

Why Excel and paper notebooks fail at product accounting?

Excel is a spreadsheet; product accounting is a process. A spreadsheet doesn’t know that a shipment should automatically reduce stock, or that a return should restore it. As a result, every transaction is entered twice (or forgotten), and within a month, file balances no longer match reality.

Specific issues with running product accounting in Excel:

• No single source of truth. The salesperson has one spreadsheet, the warehouse manager another, the accountant a third. When numbers diverge — nobody knows which is correct.
• Cost calculated by guess. With different purchase prices for the same item, Excel won’t calculate real cost automatically. Selling at a profit or a loss — unknown.
• No movement history. An item “disappeared” — where? When? Who wrote it off? In Excel this is lost information; in ERP, it’s an audit trail for every unit.
• Reservations = promises from memory. A manager promises stock to one customer, then another. Excel doesn’t see this, and double-sells appear.
• Inventory counting — quarterly stress. The whole team is blocked, the store stops working, result — minus 10-15% with no explanation.

More on 5 typical signs that your accounting isn’t coping — in our separate article on warehouse accounting.

What is FIFO and why does a retail business need it?

FIFO (First In, First Out) is a cost accounting method where the oldest batch of goods is written off first when a sale occurs. It’s the standard for retail, warehousing, and manufacturing.

Example. You purchased the same item in three batches:

You sell 150 units. FIFO writes off: 100 pcs × $50 + 50 pcs × $55 = $7,750 cost. At a sale price of $70 × 150 = $10,500 revenue, gross profit is $2,750.

Without FIFO (or with manual calculation), you usually take “average price” — and get a distorted picture. In ERPJS, FIFO works automatically for every shipment and write-off — sorts batches by date, consumes sequentially, calculates proportional cost.

What documents do you need for proper product accounting?

In a proper accounting system, every operation is a separate document with its own status, author, and date. The minimum set is 8 document types:

1. Receipt. Incoming supply from a vendor. Increases stock, records purchase prices for FIFO.
2. Shipment. Outgoing delivery to a customer. Reduces stock, calculates cost by FIFO.
3. Transfer. Internal transfer between warehouses. Doesn’t change total quantity but records location.
4. Write-off. Item damaged, lost, used for internal purposes. Reduces stock with a stated reason.
5. Return to vendor. Defective or surplus batch. Reduces stock and liabilities.
6. Return from customer. Claim processing. Restores stock, returns cost.
7. Inventory count. Physical recount with discrepancy protocol.
8. Additional costs. Distribution of customs duties, delivery, packaging onto product cost.

Every document in ERPJS automatically updates registers: Product status (real-time stock across warehouses), Product history (full audit trail of every movement), and Serial number status (for items with unique identification).

How should inventory counting look in a normal system?

Inventory counting in Excel is a notepad where the warehouse manager writes down what was counted, and someone then manually reconciles with the spreadsheet. In a normal system, it’s a managed three-step process.

Step 1. Inventory sheet builder. You select the warehouse, date, and product categories — the system generates an empty sheet listing all items that should be in stock according to accounting records.

Step 2. Physical count. The warehouse manager (or barcode scanner) fills in actual quantities for each line. For large inventories, counting is split by zones and employees.

Step 3. Inventory comparison. The system automatically generates a discrepancy report: where there’s shortage, where there’s surplus, for what amount. Based on the report, write-off or receipt documents are created — stock is reconciled.

In ERPJS, this process takes hours instead of days — and gives exact numbers instead of “plus-minus 10%”. Another benefit — partial inventory: you can check one category or zone without stopping the whole warehouse.

How to reserve stock for a customer order?

Reservation is the difference between “item is in stock” and “item is available for sale”. You received an order for 50 units with shipment tomorrow — these 50 units must be reserved so another manager doesn’t sell them today.

In Excel, reservations lead to two problems: either nobody tracks them (and double-sales occur), or they’re tracked in a separate column everyone forgets to update.

In ERPJS, reservations are automatic:

• Customer places an order → system reserves the needed quantity with “reserved” status.
• Available stock for new sales = Physical stock − Reserved.
• After shipment, the reservation is released, stock is reduced.
• If the order is cancelled — the reservation automatically returns to available stock.

The “Shortage” report shows how much stock is missing to fulfill all active orders — and needs to be reordered. This is especially useful for stores with pre-orders and online sales, where 1-3 days pass between order and shipment.

How do serial numbers help in service and retail?

Serial numbers are needed where every unit is unique: electronics, appliances, auto parts, warranty-covered furniture. ERPJS tracks serial numbers as a separate accounting layer: for every number, you can see when it arrived, from which vendor, at what price, when and to whom it was sold.

Practical use cases:

• Warranty. Customer brings an item with a claim — by serial number, you see when it was sold and whether warranty is still active.
• Batch recall. Vendor reports a defect in batch #X — you find all customers who bought items from that batch in seconds.
• Service intake. The technician receives a device for repair — the serial number is already in the database with full history.
• Theft prevention. Every unit has a unique ID — writing it off “into the shadows” is harder.

How to transition from Excel to product accounting software?

You don’t have to transition in one day. For a store or warehouse with up to 1,000 SKUs, a realistic plan is 2-3 weeks:

Week 1. Reference data. Upload the product catalog (units, categories, barcodes), counterparties (vendors, customers), and warehouses. ERPJS supports Excel import, so existing data doesn’t need manual entry.

Week 2. Starting balances and current operations. Run inventory, enter real balances into the system. From this point, run all receipts and shipments through the new system, in parallel with Excel.

Week 3. Full switchover. After a week of parallel work, compare reports. Usually at this stage, it’s already clear where Excel had “gaps”. Turn off Excel for current accounting, keep only as an archive.

How to choose an accounting system that fits your business — see our guide with 7 selection criteria. And for how product accounting affects financial results, see our article on financial accounting.

Frequently asked questions

Inventory management software becomes essential when Excel spreadsheets can no longer handle stock levels, mix-ups, and stocktaking. Research shows that businesses without automated inventory management lose up to 5% of goods due to manual tracking errors. Here are 7 criteria to help you choose the right software.

When does Excel stop working for inventory?

Excel breaks down when you have more than 200-300 SKUs and 30-50 daily transactions. Three main symptoms:

• Mix-ups. The product exists but it’s the wrong one — positions, sizes, colors get confused. Customer ordered one thing, received another.
• Unknown stock levels. To know how much is in stock, you need to physically count. The spreadsheet says 50 units, reality shows 37.
• Stocktaking nightmare. Two days of manual counting, printing lists, reconciling with the spreadsheet. After stocktaking — another day fixing discrepancies.

If you recognized even one point — it’s time to look for software. More signs: 5 Signs Your Inventory Management Isn’t Working.

What 7 criteria matter when choosing inventory software?

Not all software is equal. Here’s what to pay attention to:

1. Real-time stock levels

Basic requirement — see current stock for every product at any moment. Not “as of yesterday”, but right now. In ERPJS, stock levels update instantly with every operation — sale, purchase, or write-off.

2. Mobile stocktaking

Stocktaking should take hours, not days. Look for software with a mobile scanner — scan the barcode, the system compares with records, discrepancies are visible immediately. In ERPJS, stocktaking a warehouse with 500 items takes 2-3 hours instead of 2 days.

3. Serial numbers and batches

If your products have serial numbers (electronics, equipment) or expiration dates (food, medicine) — the software must support this. Without it, you can’t track a specific unit.

4. Receipts and shipments with documents

Every product movement must be documented: receiving note, shipping note, write-off act. This is the foundation for accounting and tax reporting.

5. Financial integration

Inventory without finances is half the picture. The software should calculate product cost, margin on each sale, total inventory value. In ERPJS, inventory management is linked to management accounting — P&L, balance sheet, and cash flow account for inventory operations automatically.

6. Multi-warehouse

If you have more than one warehouse (or warehouse + store + production) — the software must support transfers between locations and show stock per warehouse.

7. Cloud or on-premise?

Cloud software — access from any device, no installation, automatic updates. On-premise — full data control, works offline. ERPJS supports both: cloud for convenience, on-premise for those who want to control their data.

Comparing types of inventory management software

There are three main types of solutions on the market. Here’s a comparison for a typical store with 500-1000 products:

More on transitioning from Excel: Excel vs ERP: When Spreadsheets Stop Working.

What to check when testing?

Before choosing software — test it with real data. Three tips:

1. Upload your products. Check if CSV/Excel import works. If loading 500 products takes more than an hour — that’s a problem.
2. Try typical operations. Receiving goods, making a sale, processing a return, transferring between warehouses. How many clicks? Is it intuitive?
3. Do a test stocktake. This is the best test — if stocktaking is convenient, everything else will work.

How does inventory management work in ERPJS?

ERPJS inventory management covers all 7 criteria from this article. Real-time stock, mobile stocktaking, serial numbers, documents, financial integration, multi-warehouse — all in one system.

The main advantage — inventory is integrated with sales, purchasing, and financial accounting. Sold a product — stock updated, cost deducted, revenue recorded. No need to duplicate data between different programs.

Free plan with no time limits — enough for testing and getting started.

FAQ

Small business accounting in ERPJS starts with three steps: products in stock, cash flow, and client database. First results — in 2 weeks. No accountant needed, no Excel — just a system that works for you.

80% of small businesses track their accounting “in their head” or in Excel. While you have 10-20 transactions a day, it works. But as the business grows, chaos begins: products are in stock but can’t be found, money comes in but profit is unclear, customers return but you don’t remember their history.

Why do small businesses avoid proper accounting?

Three main reasons: fear of complexity, the belief “we’re still too small for ERP,” and the habit of using Excel. In reality, each of these reasons is a mistake that costs money.

“It’s too complex” — modern accounting systems don’t require a bookkeeping degree. In ERPJS, basic setup takes 1-2 hours: add products, set prices, connect your cash register.

“We’re still too small” — small businesses actually suffer the most from lack of accounting. Large businesses have a CFO and accounting department. Small businesses have an owner who simultaneously sells, purchases, and counts money. Without a system, they lose control first.

“Excel is enough” — up to a point. When you have 500+ products, 3+ employees, and 50+ transactions per day — Excel stops working. Formulas break, files get lost, data doesn’t sync.

What 3 things should you track first?

Don’t try to automate everything at once. Start with three basics — this is enough for 90% of small businesses.

1. Products and services

What’s in stock, what it costs, what price you sell at. This is the foundation — without it, you don’t know your stock levels or margins. ERPJS inventory management includes receiving, shipping, stocktaking, and serial numbers. Adding 100 products takes 30-40 minutes.

2. Money (cash + bank)

Where money came from and where it went. This is Cash Flow — the most important report for a small business. If you don’t know your Cash Flow, you’re not managing the business — the business is managing you. In ERPJS, cash movement is recorded automatically with every payment.

3. Clients

Who buys, how often, for how much. Even a simple client database gives insight: who are your best customers, who hasn’t returned in a while, who needs a reminder. In ERPJS, the CRM module is built-in — no separate software needed.

How to start accounting in 2 weeks?

A step-by-step plan, tested with dozens of small businesses. No need to dedicate entire days — 1-2 hours per day is enough.

Week 1 — products and prices:

1. Day 1-2: Register in ERPJS, create your company, set up warehouse
2. Day 3-4: Add products/services (name, purchase price, selling price)
3. Day 5: Run initial stocktaking (enter current quantities)

Week 2 — finances and reports:

1. Day 1-2: Set up cash register and bank account
2. Day 3-4: Start entering transactions (sales, purchases, payments)
3. Day 5: Check your first report — Cash Flow and stock levels

After 2 weeks, you have a working system: real-time stock visibility, clear cash flow picture, and a client database.

How is ERP different from Excel for small business?

An ERP system automates what you’d do manually in Excel. Here’s a concrete comparison for a typical store with 500 products:

More on transitioning: Excel vs ERP: When Spreadsheets Stop Working

How much does small business accounting cost?

From $0 to €50 per month — depending on scale. ERPJS has a free plan with no time limits: 1 user, 512 MB storage. This is enough for a sole proprietor or micro-business with 1-2 employees.

When to upgrade to paid? When you need:

• 3+ users (salesperson, warehouse worker, bookkeeper) — from €30/month
• More storage for product photos and documents
• Management reporting: P&L, balance sheet, analytics by business unit

Frequently Asked Questions

Most business owners track management accounting in Excel. First it’s one spreadsheet, then ten, then chaos: broken formulas, file versions, and manual data copying. Sound familiar?

Automating management accounting isn’t about million-dollar ERP implementations. It’s about seeing the real picture of your business without spending hours in spreadsheets every day.

What is management accounting and why automate it?

Management accounting is a system for collecting and analyzing financial data to make business decisions. Unlike statutory accounting (required by law), management accounting is for you.

Three key reports:

• P&L (Profit & Loss) — how much you earned, how much you spent, what’s the profit
• Cash Flow — where money came from, where it went
• Balance Sheet — what the company owns, what it owes

When these reports are prepared manually, they’re always late and often contain errors.

5 signs Excel is no longer enough

1. Reports take a week after month-end close — decisions are based on outdated data
2. Formulas break — someone accidentally changed a formula, and numbers don’t add up
3. Multiple file versions — the accountant has one set of numbers, the CFO has another
4. Manual data entry — data from the bank, from legacy systems, from CRM is copied by hand
5. No drill-down analytics — can’t quickly check profitability by client, project, or product

What does automation give you?

Real-time reports

P&L, Cash Flow, Balance Sheet — generated automatically from entered transactions. Not in a week — now.

Single source of truth

All data in one system. The accountant, CFO, and owner see the same numbers.

Multi-dimensional analytics

Profitability by client, project, or business unit — without manual work.

Control points

Cash reconciliation, inventory checks, counterparty reconciliation — the system reminds and helps you stay in control.

How to start automating?

You don’t need to automate everything at once. Start with three steps:

1. Define your chart of accounts — which accounts do you need (cash, bank, inventory, receivables, payables)
2. Start entering transactions — at minimum, cash movements. Even this alone gives you a Cash Flow picture
3. Set up reports — P&L and Balance Sheet. Verify: balance = financial result minus withdrawals

The key rule: identical events must be recorded identically. This is your accounting policy — the foundation of reliable accounting.

Why not QuickBooks or SAP?

For small and medium businesses, three things matter:

• Simplicity — no specialist needed for daily operations
• Price — free plan to start, no hidden fees
• Accessibility — runs in the browser, no installation, access from any device

ERPJS is a management accounting system that combines finance, inventory, CRM, and manufacturing in one solution. Free plan with no time limits.

FAQ

Can you do management accounting in Excel?

Yes, but only up to a point. When you have more than 50-100 transactions per month, Excel starts creating more problems than it solves: formula errors, file versioning issues, and no real-time analytics.

How much does management accounting automation cost?

From free (ERPJS free plan) to millions (SAP, Oracle). For small businesses, starting with a free solution and scaling as needed is optimal.

What’s the difference between management and statutory accounting?

Statutory accounting is for tax reporting as required by law. Management accounting is for business decisions: what’s your margin, cash flow, asset balance. These two systems can and should exist in parallel.