A perpetual inventory system immediately updates inventory levels each time a product is bought or sold. You definitely want to keep track of how much inventory you have on hand, and one of the best ways to do that is by using a perpetual inventory system.
If you don’t have one yet, the best way to get a perpetual inventory system is by using inventory management software that integrates with your accounting software. That way, you can update both your financial records and inventory records at the same time.
Here are three other benefits of using a perpetual inventory system:
Avoid overstocks and shortages. I’ve talked about this several times on this blog, so once more can’t hurt. Good inventory management is about keeping a balance between too many and too few products on hand. If you’re always updating your records, you’re more likely to make informed decisions on ordering products.
Keep accurate records. Even the most powerful inventory management system is only as good as the information it receives. With a perpetual inventory system, you are constantly feeding accurate information into it to keep it up to date. Very few typos or other mistakes can creep into a perpetual inventory system that uses barcodes, scanners and other equipment to scan products in and out.
Cut out waste. Lean inventory management is all the rage right now. Companies are looking for ways to cut costs without sacrificing customer service. Knowing how much inventory you’re moving and how much you need is a great way to accomplish these goals.
There you have it. A perpetual inventory system makes life easier for companies trying to effectively management their inventory, keep their data accurate and reduce expenses.
What’s been your experience with perpetual inventory systems? Have you enjoyed more benefits than the ones listed above? Feel free to comment below.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.