Inventory tracking and management can be tedious, prone to error, and wasteful if you are still doing the job with a set of Excel spreadsheets. If you have not made the jump to an automated, real-time way to do the job, you need to look at how QuickBooks can help.
Both QuickBooks Desktop and QuickBooks Online offer inventory management capabilities. Contact us at Exigo Business Solutions in the Kansas City area for an evaluation of what you need and which QuickBooks solution will be best for you.
The value of an automated inventory management system linked to your accounting software is such that it really does pay for itself. Set up the system, receive real-time alerts when you need to reorder, and integrate the system with your Profit First system with allocations for inventory twice a month.
When you started in business you may have simply had a few boxes of stock in the back room. Checking your inventory was as simple as peering into the boxes and counting the items. And, the job remained relatively simple when you added a few shelves to stack your slightly larger supply of inventory. Maybe that was when you quit writing down the tallies of stock items and their values in a notebook and kept track on Excel spreadsheets. But, you still needed to update your information periodically by walking into the back room and spending an hour or two counting stock items.
The big change happens for all businesses when they grow and now have a real (large) stock room or even warehouse space offsite. Now the job of counting inventory takes all day or even days and outdated and unsold inventory items pile up. You have to search for items that you know you have but have not needed for a while. Now is past the time when you need to barcode your stock and organize it in the warehouse so that fast sellers are near the staging area and rarely purchased items are in the back. And, now is also past the time when you need a system that keeps track of inventory items that are obsolete and taking up valuable warehouse space! What do you do? If you already use QuickBooks for your accounting, you are nearly there.
Both QuickBooks Desktop and QuickBooks Online offer inventory tracking and management functionality. And, QuickBooks also integrates with other inventory tracking solutions such as Fishbowl, Cin7 Inventory Software, TradeGecko, Orderhive, Square for Retail, and more. If your business imports and does wholesale distribution, QuickBooks integrates with Visco and if you need to automate inventory and cloud ordering with your manufacturing, QuickBooks integrates with Megaventory. For medical practices, QuickBooks integrates with ArbiMed Inventory as well. And, there are more options if you need them. Talk to us at Exigo Business Solutions to match your inventory management software solution to the needs of your business.
Inventory management may start with counting the widgets, again and again. But, there is a lot more to an efficient and cost efficient system. The first thing is that the system keeps track of what is ordered, what has arrived, where it is in the warehouse, when it has been ordered, and when it has been shipped. It even tracks merchandise that you have out on consignment so that “out of sight and out of mind” does not happen.
You will be able to see what you have and all of the necessary details when you want to, from your office, on your smartphone when doing a sales call, or from any place with an internet connection if you are using QuickBooks Online.
You may be familiar with concepts like lead time demand, safety stock and reorder points. But you do not have a system that tracks efficiently in real time, does the calculations for you, or alerts you when stock levels require action. You are really not able to use these basic and necessary inventory management concepts to their best benefit, if at all. Track your inventory, keep track of expenses and income, set up and revise your inventory estimates, send and track custom invoices, and synchronize your bank accounts with QuickBooks Inventory Management.
Talk to us at Exigo Business Solutions about what you need for inventory management and how to set that up with QuickBooks.
When thinking about moving up to a system that automatically tracks and manages inventory, here are some of the basic things that a system should have or do for you.
• Purchasing, reordering, and tracking capability
• Tracking of current inventory, new inventory as it arrives, and inventory sold and outgoing
• Accounting for all products in quantities down to the level needed for your business
• Calculation of waste and loss with percentages and variances
• Reporting at a business intelligence level to show the big picture, necessary details, and data provided in such a way as to allow for actionable insights
• Customizable to show low stock thresholds and provide order alerts
• Storing of vendor information and linking of that information to each and every product in the inventory
Depending on the version of QuickBooks Desktop or QuickBooks Online that you have, you will find various levels of inventory management functionality. You may or may not need all of the “bells and whistles” of the more comprehensive solution. But, you may need more functionality in the near future. Work with us at Exigo Business Solutions to choose the QuickBooks version most suited to your needs today. And we will help you make sure that when you need to add functionality in the future that the transition will be efficient and that no data will be lost.
If you need help training yourself or your employees, contact us for QuickBooks training consistent with your needs.
If you have already chosen to use the Profit First method for budgeting, getting a handle on cash flow, and maximizing profits, you will want to integrate your inventory management with this approach. With Profit First, you will allocate funds twice a month to your Profit First bank accounts and one of these can be an inventory account. Using the QuickBooks inventory management system, you will be able to do the calculations necessary to avoid being overstocked and keep from running out. Using the Profit First method you will always be able to budget for the purchase of the stock that you need.
Contact us today for help with setting up QuickBooks inventory management or for more information about the Profit First method.
The first time that you use QuickBooks Online for your accounting, it's important to take it slow. If you start entering data without understanding how everything works, you may make mistakes early on that will be difficult to undo. Here is how we recommend spending your first hour.
QuickBooks Online is great for managing and tracking inventory – as long as you’ve created thorough records. See our step by step instructions on how to create product and service records - these are essential for making critical buying decisions.
QuickBooks Custom Reports let you show the data in the best manner for you to effectively analyze and manage your business.