The Margin Conversation Accountants Should Start in September
Why inventory-led brands need COGS clarity, cash flow planning, and working capital strategy now for a stronger 2026.
Thank you to my friends at Settle for sharing this article!
If you wait until January to talk margins, you’re already too late.
For e-commerce brands with heavy inventory, the next few months will set the tone for next year’s profitability. The purchase orders being placed now, the pricing and promo strategies being finalized, and the way cash flows from order to cash will all shape the first half of 2026.
That’s why the best accountants start the 2026 margin conversation in September of 2025 (maybe even sooner), while there’s still time to adjust. Whether your client’s biggest spike is Black Friday, the holiday season, or another high-volume period, the principles are the same—catch issues early and plan with real numbers.
1. Re-Forecast 2026 With Current Numbers
Use the data you have now to stress-test next year’s forecasting.
Update costs and lead times based on current supplier quotes and shipping data so purchase orders land before peak selling periods.
Adjust reorder points using recent sales velocity, not outdated seasonal averages, to avoid overbuying or stockouts.
Scenario plan for cash flow by modeling best, worst, and most-likely demand cases, factoring in payment term changes and the margin impact from promotions or markdowns.
Pro tip: Pull supplier quotes from current POs, lead times from your inventory management system, and sales velocity from your e-commerce or ERP platform.
2. Factor in Tariffs and Other Cost Wildcards
Tariffs, supplier price hikes, and currency shifts can all hit margins without warning. Build flexibility into your 2026 plan so a surprise change doesn’t derail profitability.
Review current tariff rates for key SKUs and check if any are set to expire or change in the next 12 months. Model the impact of a 5–10% cost increase on landed costs and margin so clients know their risk exposure. Identify suppliers or alternative sourcing options that can help mitigate the impact if rates jump.
Pro tip: Use trade databases, government tariff schedules, or freight forwarder updates to stay ahead of upcoming changes.
3. Treat Busy Periods as a Live Margin Test
Your client’s busiest season—whether that’s the holiday rush, Black Friday/Cyber Monday, or another high-volume period—is the best time to see how margin holds under pressure.
Track SKU-level performance to see which products stay profitable even when marketing costs or discounts rise.
Watch for creeping costs on top sellers. Even a small per-unit increase can erase thousands in profit.
If inventory shortages are on the horizon, weigh the cost of inventory financing against a merchant cash advance. The right option can help you restock without putting unnecessary strain on cash flow.
Pro tip: Track SKU-level margin reports in your accounting software and match them against ad spend and discount logs from your platforms.
4. Cut Tech Bloat That’s Quietly Eroding Margins
Audit the tech stack before annual renewals.
Review your subscriptions such as Bill.com, which can quickly exceed $300 per month once you factor in multiple user licenses.
Replace spreadsheets with a landed cost tracking tool that connects directly to purchase orders for more accurate COGS.
Audit overlapping tools like bill pay, inventory management, procurement automation, and PIM systems. Consolidating them into one platform can save thousands each month and provide a single source of truth for inventory and payments.
Pro tip: List all software in use, check current billing statements, and cross-reference features to find overlaps.
5. Build a Cash Map for Q1 and Q2 Now
Cash gaps don’t just happen in January. They often hit right before major buying windows.
Map the first six months of 2026: PO due dates, vendor payments, receivables, and financing needs.
Spot weeks where cash will dip and arrange financing or negotiate terms in advance.
Show how missing a buy window impacts profit — whether that’s missing Prime Day or running out of best-sellers during a peak period.
Pro tip: Pull payment terms from vendor contracts, receivables data from your accounting software, and planned PO dates from your inventory system.
6. Lock In a Post-Peak Margin Debrief
Margins shift quickly during busy periods, so capture the learnings immediately.
Review sales data: margin by SKU, promo performance, and freight surprises.
Turn insights into purchasing guardrails like “We don’t buy this SKU unless landed costs are under $X” or “No discount deeper than 20% unless costs are under $Y.”
Feed these learnings into your 2026 SKU-level buying strategy to decide which products deserve more investment and which should be phased out.
Pro tip: Use your IMS for margin data, ad platform reports for promo impact, and freight invoices for cost changes.
How Settle Can Help
Settle gives accountants and their e-commerce clients the visibility and affordable tools (starting at $0/month) to make smarter margin decisions year-round, not just during the holiday rush.
Landed costs tracking tied to every PO for accurate cost reporting from the start.
Inventory financing with transparent terms to secure stock without draining cash flow.
Streamlined accounts payable and bill pay to cut admin time and ensure vendors are paid on time, keeping operations smooth and supplier relationships strong.
When you can connect purchasing, payments, and profitability in one place, margin conversations become less about fixing problems and more about funding growth.
