Cost of goods sold monthly workbook
Work out your cost of goods sold, gross profit and gross margin every month from opening stock, purchases and closing stock.
Profit starts with the cost of what you sold. Enter the opening stock, the purchases and the closing stock for each month, and the workbook works out the cost of goods sold, the gross profit on your sales and the gross margin, so you can see whether your trading is healthy before overheads.
Shops, wholesalers and small manufacturers who keep stock, and accountants preparing monthly management accounts.
What is included
- Cost of goods sold from opening stock, purchases and closing stock
- Gross profit for each month
- Gross margin percentage
- Annual totals at the top
- Chart of gross profit by month
Advertisement
Screenshots
How to use it
- Enter the opening stock value at the start of each month.
- Enter the purchases made during the month.
- Count and value your closing stock at month end.
- Enter your sales and read the cost of goods sold, gross profit and margin.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
Advertisement
More in this category
-
Accountingpdf
Credit control policy and collection letters
A credit policy and four collection letters, from a friendly reminder to a final demand, to get paid on time.
KES 810KES 900-10%
View details →
-
Accountingpdf
Audit preparation guide for small businesses
How to prepare for an annual audit: documents, schedules, timeline and what the auditor will ask.
KES 900KES 1,000-10%
View details →
-
Accountingpdf
Internal controls checklist for small businesses
A practical checklist of controls that protect a small business from error and fraud: cash, sales, purchases and payroll.
KES 720KES 800-10%
View details →
What the cost of goods sold monthly workbook does
Profit starts with the cost of what you sold. Enter the opening stock, the purchases and the closing stock for each month, and the workbook works out the cost of goods sold, the gross profit on your sales and the gross margin, so you can see whether your trading is healthy before overheads.
Who it is for
Shops, wholesalers and small manufacturers who keep stock, and accountants preparing monthly management accounts.
How to use the workbook
- Enter the opening stock value at the start of each month.
- Enter the purchases made during the month.
- Count and value your closing stock at month end.
- Enter your sales and read the cost of goods sold, gross profit and margin.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Cost of goods sold from opening stock, purchases and closing stock
- Gross profit for each month
- Gross margin percentage
- Annual totals at the top
- Chart of gross profit by month
The workbook has these sheets: Instructions, Months, By month. The main table has the columns Month; Opening stock; Purchases; Closing stock; Cost of goods sold; Sales; Gross profit; Gross margin. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.
Tips for getting it right
- Value stock the same way every month, at cost.
- Count stock physically at least once a month.
- Include freight and import costs in purchases.
- A falling margin is a prompt to check prices, waste and theft.
Why keep this record
Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.
Questions people ask
Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.
Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.
Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.
Keeping it safe and up to date
Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.
Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Turnover tax calculator. See more accounting templates or ask us for a custom one.
The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.
Related guides, calculators and templates
- Free calculator: Turnover Tax Calculator
- Guide: How to register for turnover tax and file monthly returns on iTax
- Guide: How to use M-Pesa statements to prove income and expenses
- Guide: Bookkeeping for small businesses in Kenya: how to get started
- Another template: Simple income and expense log
- Another template: Accounts payable ageing schedule
- Another template: Balance sheet template
Need something different? Request a custom template, browse all guides or see every Excel template.
Scroll inside the box to read more.