3 Accounting Pieces to be aware of for New Uniform Retailers

Starting a uniform retail business? These three accounting basics will save you cash, prevent headaches, and avoid bad decisions later.

1. Inventory Valuation (Know What You Really Own)

Uniform retail means lots of SKUs, sizes, and styles. If inventory isn’t valued correctly, your profits won’t be either.

• Set a clear method early (FIFO is common)
• Track slow-moving and obsolete items
• Don’t confuse inventory on hand with inventory that sells

2. Cost of Goods Sold (COGS) Is More Than Product Cost

For new uniform retailers, COGS often gets underestimated.

• Include freight, duties, and embellishment costs
• Separate COGS from operating expenses
• Accurate COGS = real margins you can trust

3. Cash Flow Beats Profit (Especially Early On)

You can be “profitable” on paper and still run out of cash.

• Watch payment terms with vendors and customers
• Avoid overbuying inventory too early
• Review cash flow weekly, not quarterly

Bottom line: Get these three right early, and you’ll build a healthier, more scalable uniform retail business from day one.