Simplify Inventory Management With Xero
Some business models are super simple that it seems oddly silly that it’s been left so long to get started. After all, if you buy low and sell high, what can possibly go wrong?
Turns out there’s a lot can go wrong along the way as many start-ups have realised too far down the line.
Inventory management is much more complex than an Excel spreadsheet can manage. Managing multiple stock items, supplier contracts, controlling costs between buying, shipping, tracking, reporting of opening and closing balances… the list can go on and on.
Before you know it, you’re employing staff just to keep tabs on the stock that comes and goes, then more to keep tabs on the costs that seem to be spiralling out of control.
Xero takes the hassles out of reporting
The software tracks everything and makes it simple to track, manage, report, and even retain your supplier contracts, manage your stock at any time of the day from any device and never have to worry about stock control again.
If you’re able to ship the products, Xero inventory management add ons ensure that you are able to ship with maximum efficiency and always know your stock levels and profit margins.
- Enter opening balances once…
- As you order stock in, it records the bills you get sent and the quantities will update automatically…
- Average costs will auto update
- You’ll get transactional history
- It’ll let you know much stock is on hand ready to ship, how much is ordered and the total value of both stocks.
- If you’ve got committed orders, you’ll be able to get that data too, which is super neat to maintain accurate inventories while giving you full and transparent reporting so you always know your financial position.
The most important part of inventory management is the auto updating. You can’t be effectively managing your stock control if you have to manually enter each sale. With every sale recorded, your quantity of stock on hand, total committed orders and financial data will be updated for you so there’s no more manual data entry required and certainly no guess work.
What you’re left with is a report from Xero telling you the exact income you made from the cost of goods you sold. You can access your real time profit margin, cost per items and so much more.
The more data you have, the more efficient your business runs. If you’re not using software to manage your inventory, you’re effectively letting your business run you, rather than the way it should be and that’s the opposite way of you running your business.
Make the smart decision and start automating as much of your business operations as possible.
Whilst you will still need to be actively monitoring and negotiating for better pricing and contract terms with suppliers, you’ll have more time on your hands when you partner with Xero cloud accounting. Let the software manage your inventory while you shift your focus towards managing your suppliers.