Accounting software for a company that holds stock and needs cost of goods sold tracked

If you buy and hold physical stock, then sell it, the software should update inventory value and post the cost of the items sold to COGS when each sale is recorded.

Good starting point for a small U.S. company: QuickBooks Online Plus. Its inventory feature tracks stock and posts COGS as inventory items are sold; it uses FIFO costing. Inventory tracking is included in Plus and Advanced, not the lower plans. (quickbooks.intuit.com)

Other options:

• Zoho Books — worth considering if you want inventory reports such as stock on hand, quantities purchased/sold, and inventory aging. (zoho.com)
• Xero — has basic inventory tracking, but if you need FIFO or average-cost valuation, check carefully: Xero says its core software doesn’t provide those valuation methods, so an inventory add-on may be needed. (xero.com)
• NetSuite — a more extensive option to investigate if you have complex inventory or accounting needs; it supports inventory costing and links stock reductions to COGS. (docs.oracle.com)

My quick recommendation: Start by evaluating QuickBooks Online Plus if your inventory needs are straightforward. Before choosing, confirm the costing method your accountant wants, and whether you need multiple warehouses, barcodes, assemblies, lot/serial tracking, or landed-cost allocation—those requirements can change the best fit.

If you share your approximate number of SKUs, sales channels, and whether you need FIFO, average cost, or lot-level tracking, I can narrow this down.

For a company that holds stock and needs COGS tracked, the main choice is between QuickBooks Online Plus, Xero with an inventory add-on, Zoho Books with Zoho Inventory, or a dedicated inventory platform paired with a ledger.

Best default: QuickBooks Online Plus (about $140/month list)

• QuickBooks is the most common pick for product businesses. It includes native inventory tracking in Plus and Advanced, covering stock levels, purchase orders, COGS, and inventory valuation.
• It is the lowest-friction option for accountants, since outside bookkeepers and CPAs can review the books in a system they already use.
• Costing is FIFO, and stock, cost of goods, and purchase orders stay in one plan with no add-on.
• The catch is price. If you need inventory tracking, you are looking at $140 a month at list, which is $1,680 a year. The cheaper Essentials tier has no inventory tracking.

Budget alternative: Xero

• Xero is cheaper and supports unlimited users. However, Xero includes basic inventory in all plans but expects heavier users to add Inventory Plus or a third-party app.
• Its costing is average cost rather than FIFO. A shop under 4,000 items on one channel can rely on Xero's stock control; multi-channel selling costs Growing plus Inventory Plus, $59 + $39 = $98 a month.
• Pricing is changing. One source notes Xero's prices are scheduled to increase on October 1, 2026.

Other options

• Zoho Books + Zoho Inventory: Zoho Books handles core accounting; Zoho Inventory layers purchasing, stock, order management, and basic warehouse controls. It is often cited as the best value.
• Cin7 Core: Better if you sell across many channels or manufacture. It suits small retailers, wholesalers, and manufacturers selling across multiple channels who need inventory depth more than accounting depth. It posts journals to a separate general ledger like QuickBooks Online or Xero rather than keeping the books itself. Expect higher costs, roughly $349/month and up.
• Odoo, NetSuite, or Acumatica: These are full ERPs for larger or multi-entity operations. They build stock valuation, cost of goods sold, and purchasing into the same system as the ledger.

Rule of thumb

• Few SKUs, one or two sales channels, US-based: QuickBooks Online Plus.
• Tight budget, few items, multi-user team: Xero, possibly with Inventory Plus.
• Many channels or manufacturing: an inventory platform such as Cin7 Core or Katana alongside a ledger.
• Multiple entities or a growing operation: an ERP.

Pricing figures vary across sources because of promotions and plan changes, so confirm current prices on each vendor's site. To narrow this down, tell me your approximate SKU count, how many sales channels you use, your country, and your monthly budget.

To track stock and Cost of Goods Sold (COGS) effectively, your choice of software depends largely on the complexity of your business. Many growing product-based companies find that while general accounting software can handle basic inventory, they often need dedicated inventory management tools to achieve true accuracy in COGS and stock valuation.

1. The "Two-System" Approach (Recommended for Scaling)

For most businesses with active inventory, the most reliable method is to pair a specialized inventory management system with a robust accounting platform. This prevents the common problem where your stock levels and financial records drift apart.

• How it works: You use an accounting platform (e.g., Xero or QuickBooks Online) for your general ledger, bank reconciliations, and tax compliance. You then integrate a dedicated inventory tool (e.g., Cin7, Katana, or Fishbowl) that acts as the "source of truth" for your goods.
• Why it works: When a sale occurs, the inventory software automatically calculates the COGS based on your specific inventory valuation method (FIFO, Weighted Average, etc.) and pushes a journal entry to your accounting software. This ensures your Profit & Loss statement reflects accurate margins without manual data entry.

2. All-in-One Accounting Software

If your business is smaller or has simpler inventory needs (e.g., a single location, limited number of SKUs), you can use the inventory modules built into major accounting platforms.

• QuickBooks Online (Plus/Advanced tiers): A widely used choice that includes native inventory tracking. It is best for businesses that want a familiar, all-in-one interface. Note that you must use the higher-tier plans to access full inventory features.
• Zoho Books: Highly recommended for its integration with the broader Zoho ecosystem (like Zoho Inventory). It is often praised for its scalability and value for businesses that already use other Zoho applications.
• Sage Accounting: Offers strong inventory features, including serialized inventory and job costing, which are useful for more complex operational needs.

3. Key Features to Look For

When evaluating software, do not just look for the "Inventory" label. Ensure the tool supports:

• Real-time COGS Calculation: The system must automatically update COGS when a sale is recorded, rather than requiring manual spreadsheet updates.
• Inventory Valuation Methods: Ensure it supports the method you use (typically FIFO or Weighted Average).
• Landed Cost Tracking: If you import goods, you need a system that can factor in shipping, duties, and insurance into your total product cost; otherwise, your COGS (and profit margins) will be inaccurate.
• Multi-Channel Sync: If you sell on platforms like Shopify or Amazon, choose software that can pull sales data from all channels into one place.

Summary Comparison

Recommendation: Before purchasing, check if your current accounting software has an "App Marketplace" or "Integrations" page. Most modern cloud accounting systems have pre-built connectors for specialized inventory tools, which can save you significant time in setup and data synchronization.

For a company that buys and sells stock, choose software that tracks inventory value as an asset and automatically records COGS when items are sold. Based on the current product information:

• QuickBooks Online — A strong general-purpose choice. Its inventory tracking records inventory asset and COGS entries as you sell items, and it uses weighted-average cost. ⁶
• Zoho Books — Worth considering if you want inventory tracking with FIFO costing. It calculates COGS from actual purchase costs and updates as stock is sold. ¹⁵
• Xero — Tracks item quantities and values, updates inventory and COGS on sale, and uses average cost. Its tracked inventory supports up to 4,000 items. ⁷

Quick guide: If your accountant prefers average costing, compare QuickBooks and Xero; if FIFO is important, look at Zoho Books. Confirm the plan available in your country includes the inventory features you need, and check whether you need extras such as multiple warehouses, manufacturing, or lot/serial tracking.

If you share your country, approximate number of stock items, and whether you sell online or manufacture products, I can narrow this down.