All You Need To Know About Inventory Management

Most businesses have assets, whether tangible or intangible.

And all these are recorded in the company’s financial statement including liabilities, expenses, revenue and practically everything that makes up the business. 

From among the different kinds of assets, Inventory could probably be the most important.

It is a major asset in the balance sheet. 

Too much inventory without proper inventory management can be a liability.

There are many things to consider like storage, risk of spoilage if you are in a consumables business, damage, and even pilferage and theft.

However, inadequate inventory is bad for business.

It will most likely result in disappointed, exasperated, and unhappy customers.

No stock here and no stock there is simply unacceptable.

So you see, there needs to be a balance between having too much inventory and too little inventory. 

What is inventory?

It may be the act of listing or counting certain items but as an accounting term, inventory is first and foremost, products, stocks, goods or merchandise that a company is selling to potentially earn some profit.

Second, it can also be the  raw materials needed to produce a valued product or perhaps the long-term assets used in the business like land, property, equipment as well as some copyright and trademark that the business owns. 

While there are many ways to account for inventory aside from the manual pen and paper logging, the importance really lies in tracking correctly, analyzing accurately and managing your inventory seamlessly.

This is where inventory management comes in most perfectly and what better way to do it than with an online accounting software. 

Most often, despite best efforts, inventory balance using the manual system never seems to be accurate.

It is hard to sell when you belatedly realize that you do not have the items in stock.

Reliability?

Perhaps you can score it a 5/10.

It is partially reliable and yet, you really need to put a stop to recurring problems such as this. 

Competing against other businesses means you have to be at the very least at par with them. 

With a smart, more superior and automated inventory management system, you can definitely up your game.

An online accounting software with features of inventory tracking and control can do just that!

If you can’t measure it, you can’t manage it.

Hence, it is imperative to take care of your inventory, treat it like gold because it will definitely give you the revenue that you need.

Like so many new technologies, going digital is the best solution.

An A1 inventory management system takes the place of all inventory processes taking human error out of the difficult task of tracking inventory.

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

What are the advantages of an online accounting software that does inventory management?

Having one primarily informs companies in real-time where each and every product and SKUs are located.

Knowing this data helps management become more responsive, flexible, up-to-date and pre-emptive.

And these are more to know:

• Accuracy

There is better inventory accuracy when the inventory management is solid and dependable.

You know what you have in stock and also know what you need to replenish; therefore you will not have overstocking.

• Savings

The more stocks you have that are not moving, the more money is in there.

Good monitoring of stocks and generating movement and replenishment systematically can help the company save money tied up in overly excessive stocks.

• Productivity

There is more time to segue time and energies to other aspects of the business than just counting those stocks.

• Insightfulness

With improved inventory management and stock control, you can easily detect sales trends and track expired and recalled products. 

• Good Vendor Relations

With reliable trends and insights, you can leverage to negotiate better prices and come to pleasant terms with suppliers, reinforcing a relationship with them. 

• Efficiency and Organization

An organized warehouse leads to more efficient service.

• Profitability

Good inventory management leads to higher turnover of inventory, pointing to obvious gain and profit.

• All-Improved Customer Service

Customers who are satisfied and happy with how you supply them with products and how fast you deliver make them satisfied, happy and most of all, loyal.

Now, how would you know which inventory management software is most suitable for you?

First find out what you need.

There is no one-size-fits-all kind of inventory system but there are at least some features that you may care to look into for any inventory management software you choose:

1. Automation of Workflow

   You want to keep the team informed and coordinated at all times, so this one you should look for in an inventory management system.

2. Invoicing

   Your sales and accounting teams should both benefit from effective inventory management, hence the use of an online accounting software.

3. Reporting

   Timely profitability reports are a must have. An inventory management software provides accurate, real time data, inventory values and profit margins.

All you need to know is that there is EasyFIS.

An easy fix to your mish-mash inventory.

EasyFIS is a  cloud-based inventory software that can automate, do invoicing and accomplish financial reports in real time wherever and whenever.

EasyFIS is a Software-as-a-service (SAAS) sales, inventory and Accounting system designed for Micro, Small and Medium (MSME) Enterprises.

Monitor your sales effectively, check your LIVE inventory quantity of stocks and most significantly , look after the welfare of your business and its financial health. 

Lastly, you can avail of the 30-day free access to EasyFIS so you can experience first hand the benefits EasyFIS offers.

Contact us now at +63-32-256-2904 or +639088601619 for the free access.

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!