If you own a product-based business, keeping tabs on your inventory is more important than you might think. Not paying attention to depleting inventory levels can cost you sales which costs you money.
Here are some important reasons you should be keeping an eye on your inventory levels.
Understand your customers’ needs
By keeping an eye on your inventory levels, you develop a good understanding of what products your customers are purchasing. You’ll also be able to maintain inventory levels so you have enough product on hand to meet your customers’ demand.
If a product isn’t moving, you may want to consider discontinuing it so you can focus on the products that are selling.
As you learn about your customers’ purchasing behaviours, you’ll notice patterns and can tailor your reordering process based on these purchasing behaviours. You’ll save you time and money by only ordering the products your customers are buying.
Say good-bye to year end inventory counts
When you have an inventory tracking system in place that is fully integrated with all your accounting and point-of-sale software, you don’t need to pause your business to count inventory at year-end. If you have a good inventory tracking system in place, you can simply look up the amount of inventory listed in your system.
Improve the accuracy of your financial reports
Effective inventory tracking systems reduce the risk of over or under-stating your profit. If you’re tracking your inventory with one of these systems, you can rely on the accuracy of your earnings reports. You won’t need your accountant to make large adjustments before you can see your true profit amount.
DEAR Inventory Systems
At Virtual Heights Accounting, we are a DEAR Inventory Systems partner. That means we understand how DEAR Inventory Systems works and can help you implement it in your business so you get the most benefits from using the system.
Why we like DEAR
DEAR allows you to streamline your accounting by removing the typical manual bookkeeping entries often required when a business carries inventory. It is fully integratable with many sales and accounting apps. We especially like DEAR because it integrates with Xero, another app we recommend.
DEAR does require a bit of getting used to if you’ve never used a program like this, but they have excellent training and resources available for their users.
What DEAR can do for you
There really isn’t any part of the sales process DEAR can’t improve. You can use DEAR to:
- Manage orders across multiple sales channels,
- Allow customers to manage and automate their orders,
- Streamline order fulfillment,
- Choose suppliers,
- Simplify wholesale product management and more!
If you’re interested in learning more about DEAR or would like us to help you integrate DEAR with your sales or accounting system, contact us for more information.