Date: 17th April 2015
Last week we looked at essential end of financial year housekeeping. Part of this included disposing of obsolete trading stock. Let’s take a closer look at stock management and organising your inventory with Xero (from their blog Quick tips for inventory management).
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. Here are five tips from Melanie Power, Head of Xero Bookkeeping in Australia, for staying 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.
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.
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.
That’s us! We’d love to get you started using inventory in Xero. And if you’re in the manufacturing industry or have large quantities of items with multiple warehouses, we can also work with you to select the best add-on inventory product to suit your needs.
Contact us to find out more.