Sales Dashboard for UNFI, KeHE, and Whole Foods
Free Sales Dashboard for UNFI, KeHE, and Whole Foods to measure sales, velocity, and inventory.
As a business owner, you understand the importance of managing your finances effectively. One aspect that can significantly impact your bottom line is deductions, especially if you are an emerging or established CPG or inventory-based business selling into the retail sector. This article sheds light on the importance of deductions management and how it can benefit your business.
If you’re operating in the wholesale food space, you may have encountered distributor deductions from major players like UNFI/KeHe. However, these deductions often come with substantial accounting considerations. Accountfully, as a leading provider of outsourced accounting services with extensive experience in supporting CPG businesses, understands the complexities and long-term cash effects of deductions. The good news is that they can help you effectively manage deductions if you’re considering or have already entered the wholesale grocery realm.
When you secure a retail opportunity, the excitement of this achievement can sometimes overshadow the finer details outlined in the contracts. Many companies face challenges due to extended cash cycles caused by the deduction process or unexpected deductions taken by retailers. Accountfully offers a proactive solution to counteract these challenges, dispute inaccuracies, and establish better relationships with your vendors.
Let’s explore the benefits of deductions management:
Deductions management involves tracking, managing, and disputing deductions incurred from your retailer and distributor relationships. Initially, Accountfully will take the lead in this process, working closely with you to understand your business and the specific processes behind each distributor relationship. Once a cadence and process have been established, the support can either continue as an ongoing service or be transferred to a team member within your organization.
Any business that requires regular or one-time deductions support and insight into their deductions status can benefit from deductions management services. Here are some typical benchmarks that indicate the need for this service:
Accountfully’s deductions management service is charged hourly at a rate of $175 per hour. The scope of the service is broken down into three main phases:
Phase One: Discovery and Implementation of the Deductions Management Process During this phase, Accountfully delves into your chargebacks, examining various intricacies such as slotting, spoils, sales discounts, vendor fines, shortages, non-compliance fees, and cash discounts. This discovery period involves working closely with you to understand your business and the specific processes related to each distributor relationship.
Phase Two: Tracking and Disputing Deductions (Agreed Upon Time and Scope) Once the processes and your business have been thoroughly understood, Accountfully starts tracking all deductions, validating those incurred and disputing any that are not valid. Furthermore, they keep track of expected refunds or credits to be received from each distributor.
Phase Three: Deductions Tracking Going Forward As the deductions management process matures, you have two choices:
What Do You Gain?
By engaging Accountfully for deductions management, you can expect the following benefits:
Client Success Stories
Accountfully’s deductions management service has yielded remarkable results for many clients. Some notable metrics from their longest-standing clients include:
These numbers demonstrate the significant financial impact that deductions management can have on your business. Some newer clients have achieved ROIs upwards of 667%, highlighting the value of proactive deductions management. Here’s what one client had to say about Accountfully’s deductions services:
“$100,000 of incorrect deductions from our two largest distributors. Yes, that number is correct. My brand Pitaya Foods is on pace to re-coup $100,000 this year (already $50K+ back in our bank). Last year we made the decision to hire someone full-time just to keep track of these deductions, and my biggest regret is that we did not do this a long time ago. If you are a brand just getting off the ground, pay attention to this early. If you are a big brand thinking it isn’t a big deal, you are wrong.” – Chuck Casano, Pitaya Foods
Getting Started
For new clients, Accountfully begins by learning about your business and discussing the service level that best suits your needs. You can start by sharing basic details about your business and scheduling a call on their contact page.
Existing clients can initiate the process with a discovery call, during which Accountfully evaluates the best course of action to start managing your deductions more effectively.
In conclusion, deductions management plays a vital role in optimizing your profitability and establishing equitable relationships with your distributors. By partnering with Accountfully, you can gain visibility over your deductions, dispute inaccuracies, and achieve significant returns on your investment. Take the necessary steps to protect your bottom line and ensure your business thrives in the competitive world of retail and wholesale.
Free Sales Dashboard for UNFI, KeHE, and Whole Foods to measure sales, velocity, and inventory.
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