What Does An Inventory Accountant Do?

WHAT DOES AN INVENTORY ACCOUNTANT DO?

Published: Oct 10, 2025 - The Inventory Accountant reconciles and analyzes general ledger variances while preparing journal entries and supporting audit and tax-related activities. This role assists in maintaining internal financial controls, ensuring accuracy in month-end closings, and contributing to the development of accounting policies and procedures. The accountant also focuses on improving operational efficiency through process evaluation and continuous enhancement of internal controls.

A Review of Professional Skills and Functions for Inventory Accountant

1. Inventory Accountant Duties

Cost Analysis: Provide effective analysis and understanding of COGS results, budget development, and variance reporting to senior management by developing insightful reporting that helps to understand current financial performance and set the future direction of the organization
Order Reconciliation: Prepare, reconcile, and analyze manufacturing orders to ensure proper tracking of costs and timely closure for accurate reporting
Cost Review: Partner with the Controller and senior management to review and understand raw materials, work in process, finished goods, and overhead cost drivers
Obsolescence Reporting: Prepare and present the excess and obsolescence report to the Controller and senior management
Workflow Assessment: Assess performance trends, identify workflow inefficiencies, propose and develop solutions, and verify implementation
Control Monitoring: Monitor effectiveness to ensure internal financial controls are safeguarding the organization’s assets and supporting rapid growth and cost efficiency
Cost Setup: Supervise accuracy and set up the standard cost for labor overhead and bill of materials, including material usage, material price, routings, and time consumed
Cycle Counting: Lead the process for cycle counts and timely adjustments to inventory as deviations rise
Reporting Accuracy: Oversee and ensure accuracy of all cost accounting and financial analysis reporting
Variance Monitoring: Monitor relevant key performance indicators and review rate, volume, mix, efficiency, spending, and usage variances
Cost Strategy: Partner effectively with the Controller and senior management to develop and implement ongoing cost savings strategies, benchmarking, and incorporate new practices and manufacturing strategies
Policy Development: Participate in the worldwide sharing of best practices, including developing/documenting cost accounting policy and internal controls

2. Inventory Accountant Details

Safety Compliance: Follow all applicable environmental, health and safety rules and procedures and immediately report all dangerous situations, near-misses, and injuries
Accounting Supervision: Supervises pricing, cost accounting, and general accounting functions
Cost Review: Review product costs, update, and review standards
Margin Analysis: Analyze standard vs actual costs every week, understanding gross margins on all product lines
Inventory Monitoring: Analyze inventory reports and monitor inventory transactions
Data Verification: Compares system outputs with daily input, verifying for accuracy and resolves discrepancies
Report Preparation: Prepares accounting-related reports
Close Support: Assists with monthly, quarterly, and year-end closing activities
Journal Analysis: Prepares and analyzes journal entries and proposes adjustments
Account Reconciliation: Prepares account reconciliations, actively investigates reconciling items and proposes a resolution
Cost Accuracy: Verify accurate standard costs
Record Interpretation: Assists in the analysis and interpretation of accounting records for use by management
Audit Documentation: Provides documentation for Government audits of cost proposals and direct and indirect rates
Receivables Support: Assists with accounts receivable and accounts payable
Compliance Support: Supports the company’s compliance with the requirements of Sarbanes-Oxley and Hutchinson Accounting Policy requirements
Inventory Supervision: Organize and supervise physical inventory

3. Inventory Accountant Responsibilities

Financial Execution: Execute the financial services assigned to the Inventory and Fixed Assets team, to guarantee quality, efficiency, effectiveness and on-time completion of the various tasks and process steps
Operations Assurance: Assure correctness, on-time delivery and sign-off on Inventory and FA operations
Control Compliance: Ensure internal and SOX controls are followed to guarantee completeness, correctness and security of key financial data and accounting transactions
Audit Follow-Up: Follow up on action plans, resulting from audits and/or SOX test results
Process Improvement: Discuss with the General Accounting Manager possible improvement, standardization opportunities and execute the agreed-upon process changes within own area
Efficiency Support: Support a continuous increase in the efficiency of Inventory processes
SLA Management: Ensure SLA commitments are followed to support both Fin Ops COE and local entities in achieving the objectives of the SLA’s
Project Participation: Participate in projects to support the implementation of process improvements within the area of responsibility
Data Requesting: Manually requesting inventory data to be used in the manual calculation of inflation rates
LIFO Calculation: Pull Inventory Data for LIFO calculation
LIFO Reporting: Calculate Quarterly LIFO and prepare reports for the meeting with the Controller
LIFO Journals: Booking LIFO journal entries and reconciling LIFO account reconciliations
Inquiry Response: Addressing Management and Auditor questions concerning LIFO

4. Inventory Accountant Job Summary

Variance Review: Review and verify the purchase, landed costs and price variances for the month-end closing
Closing Support: Assist with month and year-end closings and preparations for tax returns and various audits for relevant balance sheet items
Budget Reporting: Prepare budget/forecast report of the responsible accounts (both P/L and B/S)
Cost Coordination: Partner closely with the supply chain division to ensure timely and accurate costs are reflected
Standard Update: Update standard costs
Inventory Monitoring: Inventories, movements as well as financial transactions reviewed and monitored
Warehouse Cooperation: Closely cooperate with global regional warehouse/inventory owners to support the daily inventory management
Cost Reporting: Inventory and Costing-related reports and analysis to better support inventory control as well as COGS analysis
Provision Management: Closely work with the business team on Costing and Inventory related provision preparation, review and adjustments
Process Optimization: Inventory and Costing-related processes review/optimization
IFRS Alignment: Make sure the daily processes properly align with IFRS requirements
GL Collaboration: Work closely with the GL accountant on Costing and Inventory-related transactions and analysis to enhance the financial reporting accuracy
Audit Support: Deeply involved/in supporting the yearly group internal audit as well as external audit
Reconciliation Handling: Participate in the Month-end closing and Year-end closing as well as monthly AC reconciliation preparation and issue fixing

5. Inventory Accountant Accountabilities

Close Streamlining: Help streamline the inventory-close process and co-own the inventory life cycle
File Management: Prepare and upload daily 3PL files
Transfer Review: Review the creation of stock transfer orders and work with retail teams for accurate receiving
Invoice Matching: Upload trade invoices and ensure a 3-way match
Discrepancy Resolution: Track, report and resolve errors and inventory discrepancies
Account Reconciliation: Reconcile inventory accounts
Process Improvement: Find ways to improve the process and automation
System Accuracy: Work with 3PL WMS systems to ensure inventory accuracy
Issue Resolution: Work with retail and logistics teams to creatively seek a resolution to challenging issues
Project Assistance: Assist in various ad-hoc projects with the ERP team
Audit Support: Assist in annual audits

6. Inventory Accountant Functions

Match Accuracy: Work directly with Accounts Payable to ensure the three-way match process functions seamlessly and to improve GL coding accuracy and inventory accruals
SKU Management: Manage all Items/SKUs in NetSuite and associated integrations (Anvyl)
Workflow Oversight: Manage the various inventory workflows that record inventory and COGS
Variance Analysis: Maintain inventory accounting reports that compare open POs, inventory receipts and invoices with adequate variance analysis
Balance Reconciliation: Assemble balance sheet account reconciliations related to inventory and COGS analysis
Cycle Count Support: Support the fulfillment center during monthly cycle counts
Audit Preparation: Develop schedules and supporting documents as required by external auditors, compliance requirements or executive reporting
Procedure Establishment: Establish new operating and accounting procedures as the company launches new inventory sales channels
Reporting Accuracy: Partner with Business Intelligence and Engineering teams to ensure inventory and COGS are reported accurately and appropriately
Software Collaboration: Partner with the Engineering teams on software and internal reporting of inventory
COGS Analysis: Analyze income statement accounts, which will include all COGS-related accounts
Audit Support: Support timely external audit requests
Inventory Leadership: Lead physical inventory reconciliations and other ad hoc projects

7. Inventory Accountant Job Description

GL Reconciliation: Maintain, review and reconcile GL accounts and prepare supporting schedules
Cost Tracking: Track and assign production costs in various projects
Labor Allocation: Calculate production labor cost allocation manual effort
Product Launch Support: Support the launch of new commercial products by developing and reporting on key metrics
Transaction Accuracy: Ensure inventories and sales transactions are properly recorded
Inventory Analysis: Analyze inventory value, cost transfers, issuance, and write-offs on an ongoing basis
Order Support: Support sales order accuracy for system transactions
Cost Discrepancy: Perform analysis on the averaged part costs and provide a discrepancy report
Batch Coordination: Coordinate inventory batches with production
Journal Entry: Prepare monthly journal entries
Report Preparation: Prepare monthly and quarterly accounting reports
Inventory Administration: Key administrator and accountant for the annual physical inventory
Cost Control: Implement controls to ensure accurate recording and classifications of costs
Operational Assistance: Assist the department with the day-to-day, monthly, and year-end operations
Cost Estimation: Assist with the preparation of cost estimates for new or special projects
Audit Support: Supports audit and regulatory requests, generates ad hoc analysis reports

8. Inventory Accountant Overview

Report Preparation: Prepare complex financial reports utilizing a broad knowledge of accounting policies and procedures
Budget Support: Assist the finance team with budget and forecasting initiatives
Statement Accuracy: Preparation of timely and accurate monthly financial statements and related working papers
Variance Analysis: Perform monthly balance sheet, income statement and changes in financial position/budget variance analyses
Accrual Management: Prepare month-end accruals, journal entries and allocations for payroll, and other financial activities
Ledger Entry: Prepare and/or input general ledger entries by utilizing set procedures and various accounting systems
Issue Resolution: Research and resolve complex reconciling issues and discrepancies
Discrepancy Prevention: Take corrective measures to prevent
Financial Review: Review financial reports for accuracy and ensure timely preparation
Process Improvement: Suggest process improvement initiatives and provide solutions to enhance current processes
Account Reconciliation: Prepare reconciliations of various general ledger accounts
Audit Preparation: Work with external auditors and prepare audit work papers
Policy Enhancement: Review, recommend and implement best practices regarding accounting policies and procedures

9. Inventory Accountant Details and Accountabilities

Inventory Analysis: Inventory and revenue review and analysis
PO Matching: PO receiving and 3-way match
Inventory Adjustments: Inventory builds and adjustments
Revenue Reconciliation: Revenue reconciliation from various sites (Shopify)
Procurement Liaison: Liaison with the procurement team
Demand Planning: Assist with forecasting and demand planning
Cross-Functional Support: Interact across departments to extract key information
ERP Implementation: Assist with the development of ongoing ERP implementation efforts
Audit Preparation: Assist with the preparation and maintenance of audit working papers

10. Inventory Accountant Tasks

Variance Resolution: Reconcile, investigate and resolve variances in general ledger accounts
Journal Preparation: Prepare journal entries for review
Audit Support: Support internal and external audit requirements related to specific assigned areas
Tax Coordination: Partner with the Tax team for various tax and renewal filings
Project Assistance: Assist with accounting projects, including the Month-End close and annual external audit
Control Implementation: Assist with implementing and maintaining internal financial controls and procedures
Audit Assistance: Assist with external audits
Process Improvement: Proactively review current procedures and seek ways to improve processes to ensure timely monthly close, accuracy of accounting entries, and operational efficiency
Policy Development: Assist in the design, implementation, maintenance and monitoring of corporate accounting policies and procedures
Documentation Support: Assist in internal control and process documentation