Track COGS in Business Banking & Get Cash Advance

Managing a business means wearing many hats, from CEO to accountant. A common question for entrepreneurs is how to properly track expenses, like the Cost of Goods Sold (COGS), within their business banking app. While the specific steps can vary between platforms, understanding the principle is key to maintaining healthy finances. More importantly, managing the cash flow needed to cover these costs is where many businesses face challenges. That's where tools offering financial flexibility, like a fee-free cash advance from Gerald, can make a significant difference in your day-to-day operations and long-term success.

What is Cost of Goods Sold (COGS) and Why Does It Matter?

Cost of Goods Sold, or COGS, represents the direct costs of producing the goods sold by a company. This includes the cost of materials and labor directly used to create the good. According to the Internal Revenue Service (IRS), accurately calculating COGS is essential for determining your business's gross profit and taxable income. Tracking it meticulously helps you understand your profit margins, make smarter pricing decisions, and manage inventory effectively. For any small business, whether you're selling handmade crafts or running a retail store, a clear view of COGS is fundamental to financial wellness.

General Steps for Categorizing Expenses in a Business Bank Account

If you're trying to add COGS in a platform like Found Bank or another digital business account, the process generally involves expense categorization. Most modern banking apps don't have a literal "Add COGS" button but allow you to tag or categorize transactions. Here’s a general approach:

Review Transactions: Regularly go through your business transactions. Identify all purchases related to inventory, raw materials, and direct production labor.
Create Custom Categories/Tags: If your banking app allows it, create a specific category named "COGS" or subcategories like "Inventory Purchases" and "Raw Materials."
Tag Relevant Expenses: Apply your custom COGS tag to every relevant transaction. This could be a purchase from a supplier or a payment for production-related services.
Use the Notes Field: For added detail, use the transaction's notes or memo field to specify what the purchase was for. This is helpful for bookkeeping and tax time.

This process ensures that when you export your transaction history, you can easily filter and sum up all costs associated with your goods sold. It’s a simple but powerful habit for better financial planning.

Managing Inventory and COGS-Related Expenses with Financial Flexibility

Knowing your COGS is one thing; having the cash to cover those costs is another. Inventory is often the largest component of COGS, and purchasing it can strain your cash flow. This is where modern financial tools can provide a major advantage over traditional methods. With a Buy Now, Pay Later (BNPL) service, you can acquire the inventory you need to grow your business without depleting your cash reserves. Instead of paying a large lump sum upfront, you can spread the cost over time. This strategy helps maintain a healthy cash balance for other operational needs, like marketing or payroll. Using pay later apps for business purchases is becoming a popular way to manage finances without taking on high-interest debt.

Unlocking Fee-Free Cash Advances for Unexpected Business Needs

Sometimes, a business needs more than just flexible payment terms for a purchase; it needs an immediate injection of cash. Whether it's to seize a bulk inventory opportunity or cover an unexpected expense, having access to quick capital is crucial. Many turn to a payday advance or search for no credit check loans, but these often come with high fees and interest. Gerald offers a unique solution. By using our BNPL feature for your business purchases, you unlock the ability to get a zero-fee cash advance transfer. This means no interest, no service fees, and no late fees—ever. When you're in a tight spot and need an emergency cash advance, Gerald provides a safety net without the predatory costs associated with other options. This is a game-changer for gig workers and small business owners who need reliable financial support.

Need to cover an urgent business expense? Get an emergency cash advance with zero fees through Gerald.

Why Traditional Financing Can Be Risky

When business owners need money, they often explore options like a credit card cash advance or a small business loan. However, it's vital to understand the costs. A typical cash advance fee can be 3-5% of the amount, and the cash advance APR is often much higher than the card's standard purchase rate, starting to accrue interest immediately. According to Forbes Advisor, this makes it one of the most expensive ways to borrow money. Similarly, many online lenders offering a quick loan no credit check compensate for the risk with exorbitant interest rates. Gerald's model disrupts this by removing fees entirely, providing a trustworthy alternative that supports your business's growth instead of trapping it in debt. To learn more, you can compare a cash advance vs personal loan to see what works best for your situation.

Frequently Asked Questions About Cash Advances

What is considered a cash advance?
A cash advance is a short-term cash withdrawal from a credit line or through an app, designed to cover immediate expenses. Unlike a purchase, it's a form of borrowing cash directly and often comes with different terms, such as higher fees and interest rates from traditional providers.
How do cash advance apps work?
Most cash advance apps link to your bank account to verify your income and payment history. Based on this, they offer you a small, short-term advance that is typically repaid on your next payday. Gerald is different because our advances are completely free of any fees.
Can I get a cash advance with no credit check?
Yes, many instant cash advance apps, including Gerald, do not perform hard credit checks. Instead, they assess your eligibility based on your banking history and income patterns, making them accessible to those with a bad credit score or no credit history.
Are there cash advance apps with no monthly fee?
Absolutely. While many apps charge a monthly subscription, Gerald is one of the cash advance apps with no monthly fee. Our services, including BNPL and cash advances, are free to use, ensuring you get the financial help you need without hidden costs.

Disclaimer: This article is for informational purposes only. Gerald is not affiliated with, endorsed by, or sponsored by Found, Forbes, or the IRS. All trademarks mentioned are the property of their respective owners.