Fractional CFO for E-commerce: Cash Flow, Margins and Inventory Planning

• Inventory is paid first. Deposits and balances go to suppliers, then freight, duties and tariffs, often 60 to 120 days before units sell. Inventory is an asset on the balance sheet, not an expense, until it sells.
• Tariffs raised landed cost. New Section 301 duties of 10% or 12.5% on goods from 60 economies took effect July 24, 2026 (USTR), and duty-free de minimis treatment remains suspended as of October 2026. See tariffs and landed cost.
• Payout holds. Processors can hold part of your sales in a reserve to cover refunds and chargebacks.
• Financing repaid from sales. Shopify Capital offers cash advances and loans tied to your store. Amazon Lending connects invited sellers with third-party lenders. Repayments taken from sales reduce what reaches your bank.
• Ad spend comes before revenue. You pay for customer acquisition now and earn it back over the order and any repeat purchases.

1. 13-week cash forecast. Weekly cash in and out, including purchase orders, tariff payments, payouts, reserves and loan repayments.
2. Contribution margin by channel and SKU. Shopify, Amazon, TikTok Shop and wholesale each have different fees and fulfillment costs.
3. Inventory buying plan. Reorder timing and quantities tied to cash, lead times and sell-through.
4. Pricing and tariff response. Which products still make money at current landed cost, and where to reprice or resource.
5. Financing. Comparing platform financing, a bank line of credit and SBA options such as SBA 7(a) loans and CAPLines, and preparing lender-ready financials. See audit and review for e-commerce brands.
6. Monthly reporting. A short pack you can act on, with tax planning from the same CPA firm.

Learn more about our fractional CFO services, or compare fractional vs full-time CFO.

• Inventory purchases are not deductible when paid. They reduce taxable income through cost of goods sold as units sell (IRS Pub. 334). A big year-end buy does not cut this year’s tax the way owners often expect.
• Business loan interest is generally deductible, subject to limits. Loan principal repayments are not deductible.
• Profit with little cash still creates tax. Quarterly estimates need to come from the forecast, not the bank balance. See quarterly tax planning.

Best for: growing Shopify, Amazon and multichannel brands that hold inventory and are tight on cash, adding channels, or preparing for financing.

1. Free initial consultation. Tell us your channels, margins, inventory cycle and what decision is in front of you.
2. Fees quoted upfront, in writing. Transparent, fair fees in an engagement letter before work starts.
3. Books first. We confirm the books are accurate, with landed cost and payouts reconciled. If not, we fix that first.
4. Build the model. Cash forecast, contribution margin and inventory plan.
5. Monthly CFO cadence. Review, reforecast and decide, with tax planning built in.

For bookkeeping and tax under the same roof, see E-commerce accounting services.