Unreliable and incorrect inventory data can have detrimental effects on businesses. One such problem is when a warehouse manager doesn’t know exactly how many items are in stock when placing an order for more. This can lead to a serious risk of ordering the wrong number of ending up with too many or too few to meet demand. Another problem is having inventory and accounting records fail to match up properly. This can cause major problems when calculating taxes owed and the value of your inventory.
It is essential for companies to correct the problem of incorrect information about their inventory. One of the best ways to do that is with inventory software.
Having good data on inventory quantities, values, and other factors can help companies speed up their decision-making process and make it easier to make wise business decisions. For example, knowing the precise quantity of a certain item that is in stock makes it much more straightforward to know when it is appropriate to order more of it and how many to order. Accurate data can also help companies to cut costs by helping them avoid costly mistakes.
Where does inventory software fit into this? Most likely, inventory is your company’s biggest expense. After all, it is quite an investment to have a warehouse full of products. So it is a good idea to keep a close eye on all of that inventory and know how it is performing and what changes need to happen on a daily basis to keep everything running smoothly. That is why it is important to get the right balance of inventory in your warehouse.
AUTOMATIC REORDER POINTS
If you have too many products on hand, you will tie up too much capital, but if you don’t have enough on hand you might lose out on sales and upset your customers. Inventory management software helps you find the right inventory balance. It does this with the aid of automatic reorder points.
When the quantity of a part or product gets to a specific low number, the inventory software can automatically generate a purchase order for it. You can even specify the quantity you wish to reorder each time, depending on consumer demand and seasonal changes, and the vendor you wish to purchase from. The point of all this is to simplify the reordering process and keep everything in equilibrium. You are always informed of when it is time to reorder items in your warehouse and you know how many to get each time to avoid the extremes of overstock and shortage.
ACCOUNTING SOFTWARE INTEGRATION
When you use inventory software, barcode readers, and QuickBooks, you can instantly update your inventory information to reflect new orders, received products, shipped products, and sold products. Fishbowl integrates seamlessly with QuickBooks to allow inventory data to flow unhindered from the inventory software to the accounting software. Thus, your inventory and accounting records will match up perfectly every time because they are linked together. This eliminates the need for double data entry and other ways for errors to creep into the data.
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Data errors can cause serious problems in inventory management and ordering. The solution is to use inventory software to eliminate double data entry, set up automatic reorder points on goods, and use barcodes and scanners to prevent data-entry typos and other mistakes.