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Know your true margin, by SKU, batch or project.

Accurate inventory valuation and per-project cost tracking — so you know exactly what's profitable and what's quietly losing money, instead of guessing from a blended average.

Updated Jul 2026Read 6 minReviewed by Founders Bridge
On this page +
  1. What this covers
  2. What's included
  3. How we deliver it
  4. Pricing
  5. FAQs
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Blended margins hide the products that are losing money

A single, blended gross margin number feels reassuring, but it hides everything you actually need to know — the SKU that's secretly unprofitable once you allocate the right cost of goods, or the client project quietly running over budget while another subsidises it. Without proper costing, you're managing the business by averages.

We set up inventory valuation (FIFO, weighted average, or whatever method suits your business) and per-project or per-SKU cost tracking, so your reports show true, granular margin — not a blended number that masks winners and losers alike.

Inventory vs project costing

Inventory costing applies where you hold physical stock — D2C, manufacturing, retail. Project costing applies where value is delivered through discrete engagements — agencies, consultancies, service businesses. Many businesses need a hybrid of both.

What you get

What's included

Depending on your business model, this engagement covers:

Inventory valuation setup

FIFO, weighted average or standard costing implemented to match how your inventory actually moves.

SKU-level margin tracking

Cost of goods sold tracked per product, revealing true margin by SKU.

Project costing

Direct and allocated costs tracked per client project or engagement.

Stock reconciliation

Physical stock counts reconciled against book inventory to catch shrinkage or errors.

Cost allocation rules

Overhead and shared costs allocated to products or projects on a defensible basis.

Margin reporting

Regular reports showing true margin by product, batch or project — not a blended average.

Not sure which products or projects are actually profitable?

Tell us how your business is structured — we'll design the right costing approach.

How it works

How we set up your costing

1. Business model review

We understand how inventory moves or how projects are delivered before choosing a costing method.

2. Costing method setup

Valuation method and cost allocation rules are implemented in your accounting or inventory system.

3. Reporting & reconciliation

Ongoing margin reports are generated, with periodic physical stock reconciliation where applicable.

Typical timeline

Initial setup typically takes 2–3 weeks depending on inventory complexity; ongoing reporting then runs monthly alongside your regular close.

Talk to us

Get a clear, itemised quote.

Tell us about your business and we'll size up exactly what this service costs for you — no obligation.

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Fixed, itemised quote — no obligation.
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Cost

Pricing

Pricing depends on SKU count, project volume, and whether ongoing physical stock reconciliation is included. See our pricing page for indicative ranges, or get an exact, itemised quote in one call.

Answers

Frequently asked questions

What costing method is right for my business?+
It depends on how your inventory moves — FIFO suits businesses with perishable or dated stock, weighted average suits more fungible inventory. We recommend based on your actual operations.
Do you handle physical stock counts?+
We can coordinate and reconcile physical counts against book inventory, either periodically or as part of your regular close.
Can you set this up alongside existing bookkeeping?+
Yes, this integrates with your monthly bookkeeping and reporting rather than running as a separate parallel process.
Is project costing relevant if I don't hold inventory?+
Yes — any services or agency business delivering discrete client engagements benefits from per-project cost tracking to see true margin by client or project type.

Stop guessing at your margins.

See true profitability by SKU, batch or project — not a blended average.

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