For many small business owners Inventory and Stock Control can be daunting. Whether you are in the retail space or manufacturing, keeping control of your stock levels and the cost of that stock is essential to your business success and profitability.
When you understand the basic concepts of inventory movements and cost, this part of your business becomes much less daunting and can lead to some very profitable decisions.
Having the value of your stock on your balance sheet reconciled to your costs on your Profit and Loss will be required by your tax account at the end of the year. Once your inventory system is set up, providing these figures is just a matter of sending them the stock report.
Why is inventory control so important?
Retailers, wholesalers, manufacturers and fabricators all need to understand the movement of their products to maximise profits. Inventory control systems assist you to know what stock you have, where it is in your warehouse or what site it is held at, and the frequency of sales and purchases (movements in and out of your inventory).
Without a system you could be holding too little or too much stock and losing money. You could be missing out on sales due to stock being unavailable, and continuous back-orders can drive customers to your competitors. You might be buying too much stock and it goes out of date before it is sold. You might also lose money by not know where inventory is.
How can we help you to maximise profits through inventory control?
The first thing your bookkeeping will do is work with you to set up a system that tracks your stock accurately and in real time. Meaning at any point you can get access to reports that can help you to make decision on what product lines are selling, what your stock levels are, when and how much stock to purchase, and much more, in order to maximise your business profitability.
We can help you to integrate your point of sale systems (on location or online) to your accounting systems to track and control your stock. Setting up each item in your inventory and different tracking (segments) options for locations or different departments or product lines. You can then track profitability in each of these segments. Helping you to make better business decisions.
No matter what system you currently have, or if you don’t yet have a system yet, we can help to set up or adjust a system that will suit your business needs and growth goals. We can go much deeper into Cost-Volume-Profit Analysis, Sustainability Reporting, Activity-Based costing if this is needed for your industry, but it all starts with an accurate tracking system.
Please give us a call, we’d love to chat with you to see how we can help your business scale new heights in your Retail, Wholesale, Manufacturing or Fabrication business.