Inventory Control and Its Financial Impact

Accurate inventory control increases company profits and frees up time, money, and other resources that can be relocated to other important tasks. When it is adequately recorded and maintained, a company’s inventory becomes a major asset for that company and can be used to inform planning and marketing strategies.

Improves Planning

Using a specialized accounting inventory software such as the QuickBooks inventory app enables you to do away with time-consuming spreadsheets and keep accurate inventory records with ease. This in turn creates inventory data that helps you better understand what stocks are needed and whether you can take new orders from customers. It also makes sales forecasting and other predictions easier, thus enabling you to plan your operations better.

Helps With Expense Control

At the same time, accurate inventory records enable you to perform tighter expense control and order stock on time to avoid having to order it in the last minute to satisfy customer orders or meet deadlines, thus saving you special shipping costs. Customers will be satisfied with receiving their ordered items on time, and you will also be able to solve inventory-related issues and complaints more effectively. Barcode scanning and inventory tracking across multiple locations, as is provided by the Quickbooks inventory app, are two features of accounting inventory software that make expense control more effective.

Saves You Time

Last but not least, accurate and effective inventory control gives your inventory team more time for data analysis, vendor research, as well as for optimizing the inventory management process for maximum efficiency. It also makes it easier for you to measure the performance of the inventory team on a monthly basis, and reward them accordingly.