Does Your Current Accounting System Manage Your Stock Well? If Not, Explore Your Options
We often meet business owners who are using their accounting system in order to manage their stock. Sometimes this works perfectly well for small businesses, other times it creates more work than is acceptable.
The problem is that accounting systems aren’t built specifically for a business with stock. But the people who use these systems don’t always know what they are missing out on.
What are the benefits of using an add-on to manage your inventory?
- You can see what the exact cost of your inventory is. Inventory systems should have the capability to include other costs like shipping and import costs.
- You can keep track of where your stock is. Inventory systems should allow you to set up multiple sites, multiple warehouses and multiple locations within the warehouses and allocate stock accordingly.
- Inventory systems will have features that enable you to maintain an economic level of stock – avoiding under ordering, over ordering and ensuring delivery within the necessary time frame. There is no need to send emails or call the purchasing officer to request items to be ordered as the automation process will have already raised the alert.
- Inventory systems will have features to automate purchasing, avoiding time consuming manual entry of purchase orders, and keeping the economic ordering levels in place.
- Inventory systems enable barcoding of stock so that receiving in of stock, stock counts, picking of stock for sales orders are done via a scanning device. The use of barcodes massively reduces the amount of errors that occur when stock is manually entered.
- Inventory systems eliminate the use of convoluted spreadsheets that concentrate the “power” into the hands of the purchasing officer. It gives them more time to focus on other tasks.
- Inventory systems give you the knowledge to run your business better. You know what are your most profitable lines, you know which stock is slow moving and you know which stock to never order again.
These are just a few of the most obvious benefits of using a dedicated stock management system. At 2 Peas, we work with many different inventory management systems as well as the main accounting programs like Xero, MYOB and QBO. We can give you guidance on what is the best inventory or accounting system to suit your particular business requirements.
What are you waiting for? Contact us now for a free 30 minute phone consultation to discuss your business pain points with inventory management.
2 Peas Team
P: 1300 896 732