Management Accounts & Cash Flow

Knowing where the business stands, early enough to act on it.

These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.

Under accruals accounting, buying stock does not necessarily make the whole purchase an expense immediately. Unsold stock is normally held as an asset, with its cost recognised as the goods are sold. Missing stock counts, obsolete items or incorrect valuations can distort profit. Cash-basis treatment can differ. CASS can help check how stock is recorded and whether your reports reflect what is actually on hand.

Reviewed by Paul Barnes, Founder · Last reviewed 2 October 2026

All subjects
We use essential cookies to make our site work. With your consent, we'd also like to use analytics cookies to understand how visitors use our site so we can improve it. See our Privacy Policy.