Do you want to decrease the number of products you produce while at the same time increasing your profitability and customer fulfillment? That sounds a little counterintuitive, doesn’t it? If you make clever cuts in your manufacturing and inventory levels, you can enjoy these and many other benefits.
QuickBooks manufacturing software helps you make smart inventory management decisions. It does this by giving you in-depth information on trends in ordering, selling, and transferring parts and products in your warehouses. You can drill down into this data to discover details that can help you plan ahead for ups and downs in your inventory quantity requirements over time. Then you will not be stuck with unnecessary items and you will also prevent stockouts of goods when they are most needed.
In the years following the Great Recession, manufacturers and retailers dramatically reduced the amount of inventory they kept in stock because consumer demand was down and they needed to find creative ways to save money. This turned out to be a wise decision because it cut down on their carrying costs while freeing up some of their money to invest in other parts of their business and help with cash flow, as well. Plus, it taught them that they did not need to keep quite as much inventory in stock, even when economic conditions are good.
As long as manufacturers and retailers don’t go overboard and cut down on essential items that they need to have on hand to please their customers, they can benefit greatly by reducing their inventory levels to meet their short-term needs while also receiving benefits over the long term. QuickBooks manufacturing software gives them the tools they need to decide how much inventory they need at any given time to meet demand.
QuickBooks is the most popular accounting software for small businesses, but it doesn’t have all of the inventory management tools that manufacturers need. To make up for QuickBooks’ gaps in its feature set, you can use manufacturing inventory software that integrates with QuickBooks. When you order, receive, and sell products with this combined QuickBooks manufacturing software, both your accounting and inventory records automatically receive the same information. The manufacturing sends QuickBooks updates shortly after it receives them. It is not instantaneous, but it is automatic and simple compared to having to add the same information twice in two different solutions.
As mentioned above, QuickBooks manufacturing software helps you plan ahead by using historical data to make sure that you have enough supplies to make the products that are in high demand at different times of the year. It is worth reiterating this point because it means that you will not have to worry about product overstocks or outages when you use QuickBooks manufacturing software. Thus, you will have lower carrying costs and fewer lost sales. It helps you find that happy medium between two extremes.
Make QuickBooks manufacturing software a part of your business strategy to help you make smarter inventory management choices over the long haul.
Manufacturers are able to run their operations leaner and with more precision when they use a combination of QuickBooks and manufacturing software. You can drill down into your data and trust that both solutions have the correct information because they share it freely between them instead of requiring you to manually update each one when you make changes to your inventory.