How To Optimize Inventory With QuickBooks
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Originally Posted On: https://misysmanufacturingconsultants.com/how-to-optimize-inventory-with-quickbooks/
Effective inventory management calls for flexibility and optimization to stay ahead of your competitors. As a result, when customers finalize their purchases, the inventory team works behind the scenes to optimize the stock levels so that you don’t run out of stock.
According to an IBM research, a customer’s purchase decision depends on stock availability, delivery, and quality. It is estimated that about 66% of customers won’t return to a store if they miss the product they wanted.
Below, we highlight the reasons behind stock optimization and how you can use QuickBooks cloud hosting to optimize your inventory.
QuickBooks Inventory Optimization: An Overview
QuickBooks offers a method of tracking inventory from a central management system. In addition to tracking, you can get invaluable insights into your inventory activities and set alerts when you have dwindling stock levels.
Using QuickBooks cloud hosting software, you can enter non-inventory items and group your items into easily identifiable categories.
Features of the QuickBooks Inventory Optimization Suite
QuickBooks uses a set of inbuilt features to enhance inventory optimization. Here’s an overview of the software’s top features:
Inventory Valuation Summary
You can create a summary of your inventory items based on the value of each item. Examples include an overview of inventory quantity, value, and the average cost of each item.
The software enables you to retrieve every detail of your stock purchases. Typically, the system groups all purchases into easily identifiable categories called bundles.
The QuickBooks cloud hosting platform enables the retrieval of inventory sales data, including the date, type, amount, quantity, and value of each inventory item.
Inventory Valuation Details
The QuickBooks system displays all transactions related to an inventory item. You can then determine each inventory cost, quantity, and value on the platform.
QuickBooks enables you to create a summary of all sales in the inventory list. From the summary, you can determine the number of sales you make, the percentage sales level, and the average price of each inventory sale.
How To Optimize Your Stock Levels
QuickBooks is a universal inventory control tool known for resilience, user-friendliness, and impeccable functionality.
Below is a three-step approach to optimizing stock levels using QuickBooks cloud hosting.
Insert the Order in the Software
The first step is to enter the customer’s order in the QuickBooks cloud hosting software to create a purchasing agreement. The software will then generate a placeholder, showing that a sales order exists in the system.
The best part is that the process generates a report showing real-time stock levels. This means you can forecast your sales target and project how much sales you’ll make that day.
QuickBooks cloud hosting platform has an order fulfillment worksheet where you enter the order details and the expected delivery time. Fulfilling the order in the system allows QuickBooks to release the inventory from the system. Eventually, the software tracks the anticipated revenue for completing an invoice.
Create an Invoice
QuickBooks cloud hosting creates an invoice for every sales order, just like the manual sales system. In addition, the software accurately records what you should expect from the customer after receiving the products.
Benefits of Inventory Optimization Using QuickBooks Hosting Platform
QuickBooks has a simplified inventory control function that enables inventory managers to plan their stock levels by understanding what customers want. It also creates a rich purchase history for future reference when tracking sales.
In addition, QuickBooks offers the following benefits:
Most inventory operations require skills and expertise to run smoothly. Without a robust automated system, obstacles will likely present in optimizing inventory records. If you can’t track your inventory levels, it may impact your revenue stream and order cycle.
However, the QuickBooks hosting platform brings relief to business owners as it enables real-time monitoring of sales orders. Through QuickBooks, you can update your sales orders and manage them in real-time. You can also determine what products are in high demand, so your customers won’t miss out when they place an order.
Effective Financial Management
Small enterprises sometimes lose critical financial data through malware and virus attacks. Some of the most affected financial data include invoices, sales orders, and stock updates.
Luckily, QuickBooks cloud hosting promotes effective financial management. For example, you can track business expenses, analyze your report, and create a budget for the costs. Moreover, you can integrate your QuickBooks software with other financial management tools such as T-Sheets time cracker.
Enhanced Inventory Automation
Inventory management is tedious and time-consuming, especially when handling high sales volumes. The best way to cut down on time spent to optimize inventory management is by automating the process.
Through QuickBooks cloud hosting, you can automate nearly every aspect of the process, including;
- Inventory levels across various platforms
- Introduction of new products and services
- Creating and fulfilling purchase orders
- Invoice automation
Streamlined Internal Communication
Sometimes, mistakes in business enterprises occur due to poor communication. The good news is that inventory optimization enhances internal communication by using real-time status updates.
For instance, you can create and disseminate weekly inventory reports to your staff. As a result, your inventory staff will receive correct information, eventually reducing errors in the inventory management system.
Improved Delivery and Client Satisfaction
Buyers are increasingly demanding customized products when making their orders. Moreover, they want quality products and a reliable and seamless delivery system.
QuickBooks comes in handy to align and forecast your orders, thus reducing stock-outs. As a result, you’ll increase customer satisfaction when they get the products ordered.
Reduced Working Capital
Optimizing your inventory plays a significant role in reducing your working capital. The process eliminates inventory buffers, ensuring customers only get what they want at the right time. You avoid holding too much stock that you don’t require at a given trading period through inventory optimization.
QuickBooks Inventory Optimization: Is It Worth It?
Technological advancement has brought a great revolution in all business functions, including inventory. Thanks to the QuickBooks hosting platform, businesses can now optimize their inventory.
As a result, companies have better financial management, enhanced inventory automation, reduced working capital, and better customer satisfaction.