Anyone who has worked with inventory knows that taming the inventory beast within their business can sometimes be difficult. Knowing how to handle the proper accounting procedures for inventory can mean the difference between profit and loss in your business.
Here are a few key tips in taming the inventory beast in your business:
- Use inventory software that meets your needs. If you don’t know how much you have of each product, you can’t possibly operate efficiently and profitably. Fishbowl Inventory is one that we work with frequently when the needs of our clients extend beyond what QuickBooks can handle alone for our inventory based clients.
- Ensure that your inventory management software integrates with your accounting software if they are not one and the same. The key for success today is ensuring that we operate wisely and integrated software is key to that.
- Ensure that you follow the proper steps in receiving the inventory into the system before processing the sales. This is very critical to ensuring proper inventory and cost of goods sold valuation.
- Accountability is key. Make sure that there is someone within your organization that “owns” the responsibility for the management of the inventory. Without accountability, the inventory can easily go astray due to mismanagement.
- Details are the key to good inventory management. They can be the death of your business if you fail to take the time to properly account for your inventory.
Anyone who has ever worked with inventory knows that inventory can be a beast. They key is to success is having a good inventory management software that properly follows the operational aspect of how inventory moves throughout your organization.