March 31, 2020

Optimize Your QuickBooks Inventory Management

QuickBooks Online
By: Ronald B. Allen

Optimizing Your QuickBooks Inventory Management

QuickBooks provides small and medium sized businesses with accounting, asset and business management solution.  These businesses looking for inventory management optimizations can take solace in QuickBooks, which provides the business managers and owners with insights through an assortment of different reports.

Inventory and product management reports are integral in understanding the items on hand, costs associated with these products/services, profitable gains, and losses incurred after the sale of an item. Inventory management is a core function of the supply chain and if you want your distribution, retail, and wholesale business to burgeon, you need to efficiently analyze your data.

Reporting with QuickBooks

If you have decided to use QuickBooks for advanced product and inventory management, then you can make the most of the standard features. The inventory and product management reports help in comprehending the amount of inventory available and the dollars you are paying for the items. The following reports are crucial for taking important business decisions. The data represented does not only help in determining the current standing of the business but also in predicting the future operational and financial stability. Since data in QuickBooks is updated in real-time, you can be sure that is it accurate.

          1. Sales by Product/Service Summary

This report gives a detailed summary of the sales associated with items included in the Product/Service List. Average price and percentage of sales along with the quantity or amount are also shown.

          2. Sales by Product/Service Detail

QuickBooks offers small business operations and finance managers a summary of sales in the product/service list. All items are listed alongside the transaction type, date, amount, quantity, rate, and total.

          3. Inventory Valuation Detail

This report efficiently lists all the transactions associated with every item in inventory and displays how these transactions effect the quantity on hand, as well as, cost and value of items.

          4. Purchases by Product/Services Detail

The purchases made by the company are collected and grouped per the products so that you can visualize a holistic picture.

          5. Inventory Valuation Summary

Essential information, such as average cost of items, inventory worth, and quantity on hand is displayed in this report.

Optimizing Inventory Management Performance

4 of the most essential ways to be in control of your small business are listed below.

           1. Multi-Location Inventory Tracking

One of the most crucial aspects of inventory management is the ability to see the items in other locations if the company has multiple territories. QuickBooks Desktop Enterprise is equipped with tools that have the ability to track quantities and items in other locations. This feature facilitates transferring stocks from one location to another effectively. For instance, you have a product in surplus in one location but there is a dearth of that same product in another location, you can restock that item without procuring it. Intelligent redistribution of the items is one of the most important parameters of supply chain management and if executed properly, it can help companies reduce costs on item procurements. Make sure  you have turned on the inventory tracking feature.

           2. Past-and-Present Sales and Demand Forecasting 

Product lifecycles are capricious, therefore, if you want your company to have stable profit and loss, you must manage the products with efficiency. Lots of large corporations use demand forecasting to predict the estimated demand in the future of the products. With a solid knowledge about the flow of goods, you can look ahead and restock without ever being under or oversupplied. QuickBooks cannot predict demand forecasting at present.  Inventory metrics make your business efficient, with respect to sales,  the future forecasting still needs to be done by incisive planners manually, which can be extremely strenuous and difficult if there are thousands of distinct products.

           3. Item Level Visibility

Item detailing in QuickBooks is precise. Apart from categorizing the items, adding SKUs and images, you can create custom fields for the items.  The custom field types contain date, contact number, dollar amount, and a dropdown list. If you click “Required for List/ and Transaction” any one of these types, it will be displayed. You can enhance the performance of the items by efficiently learning to use QuickBooks.

           4. Recurring Purchase Orders and Restocking

What if you were supposed to issue a purchase order but forgot and the transaction got delayed? You wouldn’t want your business to get affected, right? Therefore, QuickBooks can issue recurring purchase orders. If your small business is in need of repeat purchases, you may schedule orders for the vendors by entering the shipment details, intervals, start and end date. Restocking of the inventory can be done before you run out of the inventory. Based upon your history, QuickBooks Desktop Enterprise can automate your inventory restocking through the min and max fields. The stock status reports will give you a clear-cut insight about the quantities that you need to order.

Exigo Business Solutions offers professionally managed services to small and medium sized businesses. If you want to optimize your business with enhanced technological tools, our trusted Advanced Certified QuickBooks ProAdvisors  can help you fully understand the available options.  Are you ready to make all your inventory related problems disappear? Schedule Your QuickBooks Initial Assessment today!

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