If you hold items to sell on to your customers, you’ll know that efficient inventory management is the lifeblood of your business. Lose track of your items, or fail to keep up with customer demand, and you’ll feel it on your bottom line. So here are some tips from Grant Anderson, Xero’s Head of Accounting, on how to stay on top of your inventory management:
It could well be time for a cleanup. Take this opportunity to look at the items you have and delete old lines, write off stock and also review your pricing. You can use the inventory template that’s available for you in Xero to start listing your items.
Think about your inventory handling process from purchase to sale
Are there some steps that can be eliminated by using a single ledger, cloud based application? Map each step and see where you can create some efficiencies to save time.
Track your items and monitor your quantity on hand
Run regular reports to monitor your stock levels so you never run out of those high moving items you know your customer will always want.
Take some time to review your buy and sell price for each item. Get a feel for what the current market rates are for your type of item (so that you can remain competitive and don’t price yourself out of the market). If you use Xero, you can easily run reports to review your pricing information.
Connect with a Xero Advisor
We have a pool of skilled Xero advisors who are only too happy to get you started using inventory in Xero.
If you’re in the manufacturing industry or have large quantities of items with multiple warehouses, your advisor can also work with you to select the best add-on inventory product to suit your needs. Find your nearest Xero Advisor.