Why Inventory Accuracy Is Crucial to Your Bottom Line

When you manage a business that sells products, you know that tracking your inventory can be quite the chore. But there are several reasons why inventory accuracy should be one of your concerns, and they all affect the bottom line for your business. The only way to make sure you're making all the profit you're supposed to is to have accurate inventory tracking.

Quick Order Fulfillment:

If you know what inventory you have and where it is, you can fulfill orders much more quickly. There's no more waiting for inventory to arrive if you didn't realize you were out of it, and you can get your orders out on schedule. This reliability and speed is important to your customers, and you'll find that they come back if they know you fulfill orders quickly.

Avoid Overstocking and Understocking:

If you don't know what inventory you have, you're going to get into trouble. You don't want to promise a product to a customer only to find that you don't have the inventory you expected. On the other hand, you don't want to have too much of one product on hand since that ties up resources you could use for other products or to even expand your product line. Overstocked products demonstrate the importance of inventory because having too much of something ties up your company's money in goods.

Project Inventory Needs:

With detailed inventory and sales records, you'll be able to project future needs and sales a lot more accurately. Seasonal sales and other factors will affect how much inventory you should have on hand, and you want to know how much inventory to order at that time next year. The more detailed your records are, the better your projections can be. This helps you maximize your sales during each season because you have exactly what you need.

Minimize Warehouse Costs:

Storing excess inventory can be expensive because you need warehouse space. When you know the importance of inventory and have accurate automatic counts, you can store only what you need and keep your warehouses as small as possible. This saves you money not only on the building itself, but also on the staff needed to manage and keep track of it.

There are many ways to track inventory, and you should choose a method based on its accuracy. There's no reason to waste time or money on methods that simply don't work. When you pay attention and have the inventory accuracy you need, your business will be well on its way to having the success it deserves.


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Many businesses have turned to Quickbooks inventory management software to insure inventory accuracy and increase profitability. Demetrius Newton knows that small business inventory management is not only a challenging job, it's an important one. Visit http://www.rapidinventory.com/ to learn more about business inventory control.


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