How much does it cost to produce or buy the products and services that you sell in your small business? Organize all of your cost of goods numbers in this easy-to-use template or spreadsheet.
The cost of goods (COG) forecast template and spreadsheet include categories for five types of your products and services, with slots for the cost of goods for each product or service and the number of products and services sold. The step-by-step instructions that are included on the worksheet (e.g. “line A x line B = line C”) make it easier to calculate the cost of goods (COG) for your small business.
Cost of goods are often referred to as “variable costs,” because they change each month, depending on how much you produce or buy. This spreadsheet will help you keep track of your cost of goods, separated out from your monthly overhead expenses.
If you are producing products, be sure to include the cost of labor, materials, and shipping into your cost of goods (COG). If you’re buying products, and your vendors charge you shipping, include that in your cost of goods.
The cost of goods forecast spreadsheet can be used to predict your cost of goods this year, or to recap your cost of goods from last year.
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How To Calculate Cost Of Goods (COG)
Jennifer Croft Comments
Most small business owners do not pay enough attention to the numbers in their businesses, particularly cost of goods. Yet, without an accurate idea of the cost of goods, it’s impossible to correctly price products and services. For example, if your cost of goods goes up, you need to implement a price increase, or you’ll make less money on every sale. There’s nothing exciting or glamorous about cost of goods, but every other number in your business pivots off of it. That’s why it’s important to keep track of your cost of goods numbers and start getting comfortable with them!