In this episode, The Good Food CFO, Sarah Delevan breaks down the concept of cost of goods sold (COGS) and its importance in understanding the financial health of your business. We explore the differences between accrual-based accounting and cash-based accounting, and how each method affects the calculation of COGS. We also clarify the distinction between unit COGS and business COGS, and the significance of knowing both.

There has been a lot of talk recently about the “need” to implement accrual accounting instead of cash accounting if you are, or plan to be, seeking investment for your Good Food Business.

In this episode, Sarah is joined by Danielle Hayden, Founder and CEO of Kickstart Accounting. Sarah and Danielle are breaking down cash and accrual accounting, and why the method you choose matters to your business.