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The concept of restaurant inventory management is directly tied to planning your menu. Tracking inventory is one of the best ways to be efficient and cost-effective. It’s an ultimately crucial task that certifies and ensures supply. In the restaurant business, clientele satisfaction is important and every customer’s orders are met to the best of your abilities. Saying “sorry, we are out of that” or recommending another item on the men is not always what the customer is looking for and may discourage them from visiting again. Without proper tracking of inventory, that happens a lot! Apart from that, businesses’ yearly profit by regular inventory tracking and monitoring leads to increased profits.

Restaurant inventory management brings growth and positively impacts planning your menu, kitchen activities, staff protocols, etc. It is detrimental to understanding operations. Being aware of raw material is essential for the daily efforts of staff to perform their functions. Showing attention towards providing ease in their daily work load is encouraged. Small takeaways would benefit from regularly purchasing on a day to day basis. Each day, a new menu may be offered. Therefore, purchasing things on a daily basis is recommended. To keep ingredients fresh and with a small number of resources and staff, supervision is made easier.

Restaurant inventory management not only helps in planning your menu but other important aspects as well. By effectively handling all material coming in and out, along with what is needed or procured, a positive effect is achieved, setting things on the road to growth for a restaurant.

Menu Rapture

Effectively planning a menu is the first of many benefits of proper inventory management. By knowing what is in the kitchen and the tools needed on how to deliver them to hungry clients, half of the menu dilemma is solved. By tracking the ingredients used and utensils needed to furnish an item of the menu, you can easily determine how many you can serve. By planning your pantry, crafting menus becomes convenient, effective and, by keeping variety high, appreciated by devoted clientele.

Avoid Wastage

Tracking well must become a habit to avoid wastage. Keeping an excessive amount of perishables must be minimized. Tracking also keeps a healthy stock so that no emergencies happen. Always check how ingredients are used over a period of time. By buying enough ingredients, it is understood that a certain level is maintained, which is vital for cost effectiveness. For example, sometimes, a particular ingredient in restaurant inventory management is often in high demand for salt. Therefore, a sufficient quantity is procured as it’s cheap and vital. 

Calculating Costs

After all, money is being spent to produce everything, so keeping records and files help in financial matters such as setting prices. This record gives a clear picture of how much you’ve spent and how much you need to earn to yield profits. From these records, budgets can be created and an item’s usage frequency can be determined. This helps reveal an image of overall financial health.

Other Restaurant inventory management benefits

By knowing and planning your costs, many cost-effective benefits allows businesses owners to have more control over their business. An accurate inventory will lead you to be able to cope confidently and more effectively with customer orders and requests. Because of the First-In-First-Out (FIFA) rule, inventory of vegetables, meats, fruits, and dairy products are easily handled and, with a little effort, nothing will be wasted. Also, by utilizing everything and not wasting food, businesses can tackle expenses that overburden a business. By lowering wastage and utilizing efficiency, chances for success increase while creating an atmosphere for growth. Restaurant inventory management is crucial for more than just planning your menu.

Inventory Taking Pointers

  • Organizing and regular upkeep help decrease time-consuming activities such as item wise stock taking. By setting up a daily schedule and tasking a responsible staff member to update and maintain all stock levels, you can easily pay attention to quantities available.
  • Throwing out expired or non-usable items is strongly recommended and managing space well is absolutely essential.
  • Using containers and boxes by labeling and storing in a specific order for ease in retrieving. Kitchen operations are automated and your staff executes and processes orders with careful attention to stock. Track the availability of ingredients by creating routines and kitchen protocols with restaurant inventory management details and information.
  • Planning your business and using cost-effective, proficient, inexpensive software and computer programs will help greatly on many levels.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Worker holding clibpoard in a warehouse
First In First Out and Last in First Out are the two most common inventory management concepts that are used in the modern world. These two models are different from each other but both concepts are specifications of inventory management methodologies. Here we shall discuss what is meant by each and what types of businesses can use these formats for their business operations and needs.

What is FIFO?

The FIFO inventory system uses the same strategy as it is called. First in items are usually the first to come out of any storage. For example, milk is stored according to their expiration dates in the fridge. The milk cartons that bear expiry dates that are close would be stored in the front so that those get sold first. The main aim of this concept of inventory management ensures that the oldest stock is moved out first to guarantee cost-effectiveness and avoid wastage. The widespread use of this concept makes it ideal for many industries who use it along with other models of stock management.

Pros of FIFO

With businesses around the world feeling ramifications of digression, this type of stock management technique offers significant benefits with inventory costs fluctuations. The cost approximates of the current market value of inventory available in the warehouse is easily revealed as the end result of stock-taking procedures. The flow of costs agree with the actual flow of physical products or goods. Due to its applicable ease and implementation, businesses do not choose which unit is to be delivered, as inventory management is automated. For urgent basis orders, it helps contain and arrest shipping issues.

Cons Of FIFO

Using caution when applying the FIFO method for all business endeavors is strongly recommended. At the end of the day, the results of stock and the image created about costs could not be genuine or authentic. Due to economic instability, the rates and costs are affected. FIFO is implemented while paying considerable attention towards details as this method may exaggerate situations to depict profit making patterns of growth. This appearance of “growth” is the disadvantage of FIFO inventory management as taxes are applied to this “profit” which heavily burden a business, thus, diminishing growth and stability. Also, it takes accountants months before they notice discrepancies in statements if care is not taken with the rising and falling of rates and costs. With increased prices that show up in accounts months later, FIFO can be disadvantageous.

What is LIFO?

Last In First Out is also used commonly where the last items sent to stock are the first ones to come out. An example would be machinery manufacturing where stocks already prepared and stored are shipped out first rather than newly manufactured fresh out of the rolling mill. It is widely used for non-perishable goods and this concept of inventory management includes other benefits such as periodical Cost of Goods Sold (COGS) and an appraisal of inventory.

Pros of LIFO

With huge tax advantages, LIFO is great for companies in the manufacturing industry. Using LIFO, it’s presumed that all goods that are sold are what’s laying in the inventory, whereas, it isn’t always. It also helps tackle inflation predicaments as costs of goods may change heavily if prices of raw material increase. It also offers a lower balance shown as leftover inventory. With lower tax liability due to a lower rate of income, this type of inventory management is effective in growth. LIFO is ideal for rolling stocks manufacturers, oil and gas sectors, power generation and the transportation industry.

Cons of LIFO

Due to the challenges in maintenance, LIFO is a bit more technical as older inventory can sometimes never be sold or shipped out. This bears encumbrances as accounts can derive loss of money, thus, it slows down growth. The way LIFO runs inventory, it needs more complex records and advanced accounting practices so that even unsold items in the stock are included for support in the accounting of this system with this inventory management concept. Grocery stores and restaurants cannot use this concept as it results in the rotting of most of the items which have later expiry dates. Shelved artifacts which are not sold are costly. Also, globally expanding businesses and companies cannot use LIFO due to the difference in accounting standards, which do not follow the LIFO methods. In the US, efforts have been undertaken to repeal the LIFO standards but, with recent trends, only further restrictions are seen.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Inventory management is one important aspect of retail and manufacturing businesses. Inventory is everything that needs to be sold in order for your company to make a profit. Some might think that businesses should be stocked up at all times, regardless of the demand because it isn’t a good notion to disappoint customers. However, there are many costs associated with holding inventory and it might not turn out to be such a wise notion. Furthermore, inventory costs are directly related to the amount of income tax you have to pay at the year-end. The costs of purchasing and storing the inventory are considered as your costs of doing business, which must be accounted for in the income statement. Depending on your method of stating your inventory, the costs may vary.

Inventory Management and Taxable Income

Before calculating taxable income, you need to determine the costs of acquiring the inventory. Commonly, inventory costs will include the purchase price, freight charges and amount of sales tax that has been paid. All of these expenses need to be included in your income statement along with the cost of goods sold. The cost of goods need to be calculated separately and reduces your gross income, which further leads to the reduction of income tax that needs to be paid. When your cost of goods sold is higher, it will reduce your net taxable income and eventually decrease the amount of tax paid.

Inventory Management using FIFO

There are basically four approved methods of recording your inventory. However, the two most commonly used are FIFO (first in first out) and LIFO (last in first out). As the name suggests, the inventory rotates chronologically in and out of storage. All of the inventory items that are bought first are sold first. As the inflation has a direct relation to the cost of inventory, you will have to use cheap units first and so on. Because your cost of goods sold is low, your net income increases, leading to increased income tax that has to be paid.

Inventory Management using LIFO

LIFO is quite the opposite of FIFO as you use your new inventory first and then move on to the oldest. Inflation always raises the prices of products, therefore, more expensive units are sold first. This, in return, increases your cost of goods sold dramatically and reduces your net income. A reduced net income means that that you will have to pay a lower income tax at the end of the year.

Conclusion

Both of these methods of inventory management have their ups and downs. Depending on the need of the hour, companies decide which one to use. Companies normally prefer to use LIFO more often but you have to ask for permission from the IRS by filling out the Form 970. You can also be held responsible for tax liability in case you change the industry of your business. The difference between FIFO and LIFO will be calculated and you will have to pay the tax on the balance.

Large tax payments are a huge concern for large corporations as their earnings are billions of dollars. Their top concern is to save every dollar from taxes. A small business may not have to worry about such issues at the start but, as your business grows, you will have to formulate a solid plan for inventory management. You have to account for every dollar that is spent in acquiring and holding the inventory because it can later come back and hurt you in the form of a significant income tax bill.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

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Financial dashboards for businesses are essential for evaluating daily business operations on a regular basis. Financial dashboards guarantee to keep the business on the right track. It is one of the most vital elements of any business. Businesses may use various techniques to invest in a proficient financial management program to ensure that the best practices for proper inventory management are followed.

Financial management is a major part of any business’s supply chain management, manufacturing, customer relations and every business activity. The stock inventory management aims to have the correct products available for sale. Tracking inventory in real time is effective in streamlining the entire operations process.

The dashboards help the business to have the correct products available at the right time. It prevents out of stock products and funds from being tied up in surplus stock. Moreover, stock inventory management helps your business ensure that all products are sold in time to prevent spoilage. It also saves millions.

Benefits of a Financial Dashboard

Financial dashboards provide a complete and detailed overview of an income statement with net profit, revenue, and other relevant performance ratios. Each dashboard represents four crucial financial indicators such as the operating profit, net profit margin, OPEX ratio, and gross profit margin.

The revenue is found in determining the selling price by calculating the total cost of goods sold without including details considering any other taxes and expenditures. The dashboards allow businesses to consider certain costs associated with their operations on a daily basis for bookkeeping.

One of the main metrics for these dashboards is the inclusion of income before interest and taxes or EBIT. The dashboards consider calculating all expenses and costs before interests; then the applicable taxes are included in the overall cost to determine net profit.

Calculation of Gross Profit Margin by Dashboard

The Gross Profit Margin for any business is essential for determining the total sales percentage with the revenue that remains after the bookkeeping of all direct costs with goods and services. The gross profit margin is useful in estimating how much the company has to invest, determines spending on research and development, and how effectively they can contribute towards earning a profit.

Top 3 Financial Dashboards for Your Business

Entrepreneurs are preoccupied with daily business operations and, often, they do not have sufficient time left for handling their finances. Many financial dashboards are available to help business owners effectively handle their finances. Most dashboards offer easy to read charts with colorful graphics. The most effective step for start-ups is to use online dashboards that help them track their finances as they are unable to hire an expert bookkeeper to manage business finances.

Here are some affordable business dashboards that will determine how to handle the finances of any business.

inDinero

inDinero was launched in 2010. This financial dashboard is suitable for start-ups. inDinero gathers all business transactions from the bank history as well as credit cards details and other financial documents are efficiently organized. The business owner does not need to spend hours in data entry. Just save the account number and bank information and it automatically categorizes transactions. Some of the categories of transactions are:

  • Advertising
  • Payroll
  • Dining and refreshments
  • Another spending for every month
  • Accounting reports

BodeTree

BodeTree was introduced as a financial dashboard in 2011 in partnership with Intuit, the company that launched QuickBooks. BodeTree relies on QuickBooks to assess different financial information from those who rely on QuickBooks for bookkeeping. It needs to be connected to the QuickBooks account. Once the connection is complete, it categorizes and generates a breakdown of all activities and expenses associated with each operation.

The BodeTree dashboard is named after the legendary Bodhi Tree, where the Buddha reached nirvana. Similarly, the dashboard will be able to determine a benchmark for the business depending on their algorithm based on the transaction and expenses history.

Corelytics

The Corelytics financial dashboard was launched in 2005; this dashboard works by importing all of the financial information associated with the business. It gathers information from different accounting programs including Sage, PeachTree, MYOB, and QuickBooks, among others, for the financial dashboard. After all of the information from each accounting platform is collected, Corelytics will get to work by categorizing every metric. These metrics, once generated, can monitor every transaction. Some of the metrics are:

  • Expenses
  • Gross margin
  • Revenue
  • Receivables
  • Owner compensation
  • Profits

Financial dashboards allow setting goals and objectives for each of the metrics above. The Corelytics financial dashboard highlights every single metric with different colors. The colors determine when each metric is not performing according to the standards of the business. This financial dashboard is one of the most useful for every business. It comes with a mobile application, allowing the business owner to monitor the activities on the move for better bookkeeping. It also won the Showcase award for the best dashboard.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Effective management of your inventory will enhance your sales and give tough competition to your competitors. If you are unaware of the worth of your inventory, you will have difficulty selling it. Thankfully, there are several inventory management operating systems for both small and medium-sized companies to help with this tedious task. Below are the top inventory management software options that can ensure a boost in your sales.

 ABC Inventory

ABC inventory is regarded as a subset of the Almyta Controlling System. It is a free package that allows you to effectively manage your warehouse, warranties, serial numbers, etc. The free version of ABC inventory is designed to be run on one personal computer because numerous workstations are not able to synchronize the same data simultaneously.

ABC is specifically designed for smaller businesses that do not need the attractive additional features like bigger companies do. 

 Delivrd

Delivrd is a type of inventory management that is free, cloud-based, and designed for order fulfillment solutions. This software was launched at the end of 2016 and presently has made a grip in the market. It is used for online retails, small selling, small and large e-commerce enterprises, etc. It secures all details of the order fulfillment and gives you hassle-free service from picking and packing to shipping.

If an individual is using Shopify or any other e-commerce software, Delivrd can integrate with it, which results in an easy experience. Delivrd is also useful for managing financial reporting and barcoding.

 inFlow

inFlow is another essential inventory management software which is based on the desktop. It helps small and medium-sized companies manage their customer orders, reorder stocks, generate invoices and bills, and make customized reports. The software is particularly suited for desktop users.

inFlow helps a number of businesses and industries in many ways, i.e. wholesaling, manufacturing, health management, etc. It is estimated that as many as 750,000 users take advantage of managing their businesses with this inventory management software. inFlow offers customers a free option for the first 100 products. It comes in both a free package and a credit package with no expiration date and can be used perpetually. There are some default features included in this software including barcoding, methods of accounting, automatic data backup facility, and others. When a business uses the free version of inFlow, it will automatically be upgraded to the payment version, which will cost around $399. It has more advanced features and enables the customer to manage their orders in a better way. When purchasing the software, you will get free support for one year.

 Odoo

Odoo is a double entry inventory management software that allows you to fully trace the supply and demand management of the company. It is a fast operating system designed for modern inventory management. It enables you to get your work done with less effort. It can easily manage single or multiple warehouses by activating its features. By using barcode scanning, you can scan products and track orders no matter where you are.

Odoo is specifically designed for Enterprise Resource Planning, but with the feature of add-on in software, it can be used both for small and large businesses. You may take advantage of your warehouse system including a point of sales system by using the inventory management software. Because it is an ERP software, sales and purchases will flow into inventory and accounting. Large businesses can enjoy full features of the software by purchasing its credit version.

 RightControl Lite

Rightcontrol Lite is a universal inventory management software designed for the sales management of small and medium-sized businesses. It will enable you to synchronize your inventory and sales tracking at one time. If you are willing to have a long-term inventory management solution, you can utilize Rightcontrol Lite features which also include better warehouse management, better shipping tools, extra functionalities with no cost, and generation of in-depth reports. It can also control your bookkeeping entries to sustain the progress of your product. Customers can set reminders whenever they feel that their stocks are getting low as well as print labels and integrate with a barcode system. If you need to expand your products and want more users to purchase your products, you can upgrade this inventory software from the Solo to Pro version by purchasing it, which will give you more features for effective inventory management.

 Conclusion

All of the above systems are used to manage small and medium-sized businesses and fulfill their respective inventory requirements. You can see your company grow once you take advantage of the above inventory software options. They have maintained a strong position in the market and have the capability to move your business up.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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It’s on every entrepreneur’s mind, this question has them thinking hard. How exactly does one measure how much stock to have available, ready to delivery and how much is too much?  In any business, the need to have stock is important and depends on the activities necessary to run your business. To be able to grow, any business will first have to cater the demand for an item and then start selling. Many businesses need to have a specific level of stock available so that they can keep up with that demand. Here are some examples of businesses that need to keep stock available, to supply without delay and deliver to demands.

These examples will give a better picture of what levels of inventory must be kept. The whole concept of this question is what to have on hand in order to be able to keep up with demand and not fall short on supply. By having enough, one is cost effective and efficient. Planning out budgets, finances, and expenditures would be rendered meaningless if the proper stock is not maintained. Without stock, deliveries cease which translates to business cessation. This, however, is foreseen in all business plans and precautions are taken well in advance. With hard work and planning, results are guaranteed.

Restaurants

If you are selling edible products at a restaurant, then specific quantities of raw stock, as well as semi cooked items, will be essentially needed. Let’s say, it’s a fast food restaurant and the burgers are really popular. Buns, sauces, raw veggies, patties, garnishes, etc. have to be purchased in a daily stock straight from vendors on priority. You will have to coordinate with the bakery, meat market, and vegetable vendor on a daily basis to ensure smooth functioning. If an order of ten burgers is received and you have only have the ingredients for six, the odds are that customer will not come back due to disappointment. Whatever you are selling, it’s got to be enough to meet the expected demands!

Retail Stores

With tight inventory control systems and proper handling of all artifacts, complete with model numbers, rows, and designated areas in stock, retail stores are hard work to say the least. For instance, a t-shirt would normally be kept in four regular sizes, ranging from small to extra-large and different colors, which means different codes for each one. Shoes should be kept in sizes for men and women, ranging from 6.5 to 10. Same with the codes, as different colors are for different codes. A very specific level of stock is needed for what you are selling to handle customers with grace to their satisfaction.

Pharmacies and Drug Stores

Drug stores have an especial POS software that takes care of their inventory and stock levels. This software helps them manage and monitor all inventory. When a drugstore is set up, this software is configured with a minimum level warning system that tells the user the availability of whatever is present in stock. In addition, costly and expensive meds, like cancer treatment prescriptions, are on a limited stock. But, commonly occurring meds are stocked in high levels, such as aspirin or flu-fighters. If you are selling medicine, then you must have stock according to your location and area.

Considerations for Inventory Management

Trends or Seasons

A growing and thriving business will need to forecast the sales seasons each year and make itself ready for upcoming influxes. To better prepare, stocks are absolutely essential to be able to accommodate patrons and regular customers. By taking this action, it can easily be determined what part of the year is most active and which is the slowest, thus you can prepare accordingly, with planning. This will help to envision cost-effective methods of stocking whatever you are selling.

Weekends and Weather

Some businesses thrive during the weekend while they are slow on regular weekdays. This prediction can help business owners arm their stocks before the weekend hits. Not just restaurants, but also bars, clubs and many other weekend leisure venues party on until the break of dawn on Fridays through Sundays. Their demands are all met with success, paving their way to becoming the most popular joint. However, if stocks are not leveled according to predictions, businesses will be negatively affected.

Conclusion

By understanding the kind of business you are, your need for available stock should be set accordingly. There are days when it is super-fast and hectic while others are indolent and relaxed. You are selling by recognizing the needs of clientele and preparing to meet their demands, so a solid stock is mandatory to be kept in hand.
Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Woman using a barcode reader in a distribution warehouse
Inventory management systems help keep tabs on merchandise and inventory through the full supply chain a business operates in. Inventory management systems cover it all; from manufacturing to retail, storehouse to shipping, and everything that lies in between.

Basically, it all comes down to the business overlooking its operations, therefore, allowing them to establish better investments and decisions. Various inventory managers give attention to diverse areas pertaining to the supply chain. Usually, small businesses are more concerned with the ordering and retailing side of the chain.

What Features of an Inventory Management System do I Need?

Are you facing problems handling your inventory? If so, it is time to consider an inventory management system so that you can manage your inventory processes in your control.

Now, the problem arises. With all of the options that are available nowadays, how do you find out which is the right solution for your business? What features should you be considering?

An inventory management system selected to look after your inventory might offer the features for your business requirements depending on your budget and needs. Generally, all of these management systems are most likely to include:

  1. Barcoding
  2. Inventory alerts
  3. Tie-ins or accounting tools
  4. Reporting tools
  5. Inventory forecasting

Top Features in an Inventory Management System

Barcoding and Scanning

Although the amount of daily orders being received can be exciting, it could result in problems if you are not in a position to achieve and accomplish those orders competently. Retailers who are in the position to process a high volume of orders, wish to restructure and simplify their procedures all the more by applying barcoding and scanning on the pickup, package, and shipping stages.

Simple Inventory Control

Though it sounds simple, it is on the top of the list for most demanded features in an inventory management system. With the help of this feature, you are able to conduct a systematic way of handling and controlling your inventory throughout your sales channels.

Demand Estimation and Forecasting

This feature is all about helping you prepare for what should be ordered so that your resources are spent wisely. If you have the proper required tools, it will be a lot easier for you to learn which commodities are the ones selling and which networks are the ones performing.

With access to such features, you can get right down to the details of your sales. This is a great way to provide you with all indispensable information that will help you maintain accurate inventory levels. In the end, you will be able to make much better and wiser decisions on how much and what to buy.

Tracking Specific Stock Items (aka Lot)

Retailers who are in the business of selling Food and Drug Administration-regulated products have a deep understanding of the significance of detecting lots or specific stock items. In the case where a commodity is recalled due to a specific reason, tracking down the specific stock items will help you know which items are available on the shelves or in stock.

In addition, you can also keep tabs on which of your consumers have received their product and which ones are about to receive them.

Accounting Incorporation

Although an accounting system will not perform the work related to a specialized order, it is important to manage a successful business. With a direct integration in your accounting bundle, an inventory management system will be of value to you and your business. This will also help you in your bookkeeping requirements.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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Provided are the top 5 ways that will guide you on how to select the right inventory management system for precise estimations.

1. Have a Financial Plan

Right off the bat, you have to settle on a financial plan. It will be relatively difficult to locate the correct fit in the event that you don’t have the foggiest idea about your value extend. A characterized spending will limit your pursuit, sparing you the time and exertion it would take to consider frameworks outside your spending range. Stock administration frameworks can run in cost from upwards of $100,000. Thus, there are numerous alternatives in wording quality, capacities, and versatility. Not comprehending your value will incredibly constrain your capacity to locate the correct fit.

2. Know your Stock Difficulties

As there is an extensive variety of costs, there is an expansiveness of framework capacities and usefulness. Ensure that you know your stock procedures and what moves with your present work process. This data will make it simple for stock administration experts to suggest arrangements that can illuminate your stock difficulties.

3. Decide How to Track Framework

There is a wide range of approaches to track stock. It’s essential to realize what technique you will utilize. You can track stock utilizing standardized identifications, serialization, RFID labels, part control, and kitting. There are numerous strategies, as well, as some will work better with specific stock procedures. This is the reason you should choose a technique before you begin your scan for a stock framework. Not all frameworks have the ability to utilize all following, particularly in the mid to little office markets. Compelling your stock procedures to fit a framework can be risky and expensive. To maintain a strategic distance from this, characterize which following strategy will work best before you begin your hunt.

Contingent upon your decision, you may need to buy equipment and scanners. You need to ensure the scanners you pick are usable with your framework. On the off chance that you select your scanners after your framework, they may not be correct. Then again, the scanners that are compatible may not be appropriate for your necessities. It is vital to settle on these choices beforehand.

4. Association

Do you have solid stock administration investigators? Is it accurate to say that they are talented in working with your frameworks? By what method can your staff be sorted out to design and oversee stock undertakings all the more adequately? When we look at the cost and advantage expenses of staff associated with these capacities, it adds up to far under 1% of net deals. This is a little cost contrasted with the significance. Numerous organizations are as yet taking a look at stock administration as an administrative action. Having the correct stock accessibility plays a considerably more critical part. Do you have an adequate and experienced workforce set up thinking about the significance?

5. Framework Bolsters

Including special case detailing, stock close by and on-arrange accessibility by area. In addition, projection of how SKUs are offering versus the point when buying orders should be set to avoid stocks-outs. This additionally incorporates being able to save a SKU amount to a client request, merchant administration to screen, and track seller transported orders.

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