It’s a classic new business story – your business carries inventory and you’ve employed Excel and the eye test to track inventory.
Then, one day, the house of cards comes tumbling down.
This is the critical event that opens your eyes to the need for an inventory system. Don’t fall victim to this vicious cycle, here are 3 reasons you should get an inventory system before you break your current processes.
Traditionally there are two types of inventory tracking options, periodic or perpetual. In today’s environment, the reality is that perpetual tracking is the only option to grow your business efficiently. Using an inventory system will provide you with real-time data as events occur. This not only supports efficient operations but also feeds into accurate bookkeeping and accounting records. This empowers you to make strategic decisions on the fly with the confidence of accurate data. With the help of QuickBooks Commerce, you can streamline workflows, lower inventory costs, and put your business in the best position to grow.
One of the biggest challenges of maintaining inventory is handling human error. Human error can include mispicks, lost inventory, damaged inventory, incorrect data entry, or theft. With an inventory system many of the data capture points can be automated with barcodes, eliminating the need for human entry. A good inventory system will be equipped with smart reporting to perform inventory analysis , assist with forecasting, and help you make informed decisions. With historical and current information about your business’s sales and which products are in demand, you can better plan inventory replenishment and reduce carrying costs. Inventory movements are tracked, allowing loss to be isolated to a person or process enabling accountability among employees. Combined, the benefits of reduced human error will allow the business to run leaner and more efficiently.
The ROI on a well-implemented and effective inventory system justifies the cost outlay many times over. The benefits run the gamut from reduced inventory costs, decreased inventory shrink, and decreased fulfillment times. All things considered, the cost savings generated by an inventory system quickly pays for any additional costs.
If your business has inventory, a system to track that inventory is critical to operations. Additionally, as the business grows one of the first hires will likely be someone whose sole responsibility is inventory operations. A business with good control over inventory is a business poised to scale quickly.
QuickBooks Online is a cloud-based accounting and bookkeeping software that allows small business owners to manage payroll, create invoices, reconcile bank transactions, and more.
QuickBooks Commerce is an inventory management add-on that integrates with QuickBooks Online to automate accounting processes and manage inventory and multiple e-commerce channels. Relevant financial and accounting data from QuickBooks Commerce also pushes to QuickBooks Online, eliminating the need for manual data entry.
For seamless integration with your financials, consider a system compatible with platforms like QuickBooks Online, and consult with a QuickBooks ProAdvisor for expert setup. We at Stilz Bookkeeping offer high quality bookkeeping services. Contact Us for more information.
Disclaimer: The information provided in this blog is for general informational purposes only. It is not intended as accounting, tax, legal, or other professional advice. You should not act or refrain from acting on the basis of any content in this site without first consulting a financial or tax professional. We are not liable for any potential errors or omissions in this information or for any actions taken based on this information.
