If you’ve been looking for a way to save time while efficiently managing your inventory, Sage has you covered with the literal click of a few buttons. If uploading product or stock items in seconds, getting accurate stock levels, and having around-the-clock access to updated inventory reports sounds enticing, this is the cloud-based accounting solution for you.
Inventory Management Challenges
Inventory management is a critical element of the supply chain, but it is also a tricky one. Every business is unique and as a result, every business’s inventory needs are different. Before you can find the best solutions for your company, you need to first understand your business’s unique challenges.
Top 5 Challenges:
- Traditional accounting systems do not offer real-time visibility into inventory levels. This means you run the risk of dealing with inaccuracies which can lead to running out of stock, or inversely, yet equally as unfortunate, overstocking.
- If you need to manage inventory across multiple locations you might find the task cumbersome. Multiple location inputting is difficult to manage due to human error which can arise during inputting and with item and stock tracking.
- Traditional accounting systems often lack cost-tracking capabilities which directly affects the ability of a company to measure current, past, and future profitability.
- Systems that require manual entry can lead to inventory imbalances and inefficiencies and make it difficult to predict stock demand.
- When manually integrating your business inventory management system with your sales channels you run the risk of discrepancies, order processing delays as well as loss of sales. You also put your business at risk of in-house fraud.
Types Of Inventory Methods
Inventory methods, like everything else in business, are not one-size-fits-all. Multiple facets of your business will ultimately be impacted by the method you use, so it is important to know what your options are. There are four types of inventory accounting options: specific identification, weighted average, LIFO, and FIFO.
Specific identification
This inventory method is primarily used for larger business expenses, with items listed at their actual cost. Although efficient, the system becomes difficult to track once a large number of items are added.
Weighted average
This option is ideal for items that can be described as either interchangeable or physically indistinguishable. Prices are calculated by assessing the cost of similar items already in your inventory. A disadvantage of this system is that it may not accurately reflect individual item costs.
FIFO
FIFO stands for first in, first out, and as the name suggests, older inventory items are prioritized. Although this option is designed to result in inventory values that align closely with current prices there is a risk of costs being skewed as older items are often cheaper.
LIFO
LIFO, which stands for last in, first out, looks at the newest inventory items first. This method sees higher-cost items being tracked and often results in a balance sheet featuring higher cost of goods and a lower inventory value.
To learn more about these inventory methods click here.
Why choose a Sage Cloud-Based Solution for Inventory Management?
Apart from the obvious benefit of cloud-based software eliminating the need for installation or downloads, Sage is also fully customizable. In addition, Sage is known for providing accounting and business management software solutions that offer multiple benefits including but not limited to efficient tracking and management of inventory.
Robust Inventory Management
Sage accounting software allows you to track stock levels and manage product variations while giving you real-time visibility into your inventory.
Integration Capabilities
The Business Inventory management system can integrate with various software platforms and payment processors. This offers a streamlined business operation with cross-channel reporting and is incredibly useful in terms of online sales.
Scalability
In line with Sage’s customisability, the system is designed to be adjustable and can grow and shrink in accordance with your business needs.
Cloud-Based Benefits
The system is accessible from anywhere, provided you have an internet connection. It also offers automatic updates and the added benefit of reduced IT infrastructure costs.
User-Friendly Interface
It is simple to onboard employees onto the system and due to the simplicity of the operating system, it offers reduced training costs.
Security
Data security is a big focus for all Sage accounting software. This includes encryption access controls and an emphasis on regular backups. This is incredibly important when dealing with sensitive financial and inventory data.
To learn more about Sage accounting software for business inventory and stock management click here.
Conclusion
It is clear that to stay abreast of your business’s inner workings you need effective inventory management. This is true for both single-location and multi-location inventory tracking as it directly impacts profitability, customer happiness, expenses, and operations.
Inventory management is a continual process that needs constant analysis and improvement. To maintain efficiency, keep expenses under control, and retain competitiveness, ongoing adjustments, and optimization efforts are required.
Utilizing the right technology allows business owners to directly address any problems with inventory management systems.
Investing in technology, such as inventory management software and cloud-based accounting, and embracing automation increases visibility, lowers errors, and enhances accuracy.
To learn more about Lescault and Walderman Sage accounting software integration services for business inventory management click here.
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