There are many ways to plan and manage your inventory, each guided by your product and business needs. The inventory management process involves tracking stock from the point of purchase or creation through its sale. Inventory management looks at how much stock to order and when to order it. The right inventory management system automates some processes, accurately tracks incoming and outgoing goods and services and provides the real-time data needed to make purchasing and product development decisions. Carry too little, and you risk losing money from lost sales.Įffective inventory management systems can help businesses save time and money and maximize sales. Carry too much inventory, and you're wasting valuable fiscal resources. Inventory management isn't merely an accounting of what is it involves predicting what "will be" so the organization can ensure that it has enough product, raw materials and supplies to meet future demand. Inventory management encompasses accounting for the products in your warehouse, the raw materials needed to make those products and other supplies to keep your business running.
On its surface, the concept of inventory management might seem pretty straightforward - how much stock do we have on hand for each of the products we sell? But it’s much more complicated than that. Middle East, Nordics and Other Regions (opens in new tab).United States/Canada (opens in new tab).Advertising & Digital Marketing Agencies.Advertising and Digital Marketing Agencies.Don’t forget about the small things like car mileage and petty cash. With everything in order from the beginning it saves you from having to go back to try to figure things out. With your books in order, prepping for taxes should be a breeze. As your business grows, you may want to bring someone on and/or deploy more sophisticated bookkeeping software. If you decide to do your own bookkeeping, you should consult with an expert especially at the beginning to make sure that you are on track. You are responsible for maintaining records on withholding, employer matching, unemployment and worker’s compensation.
Employers are responsible for maintaining employee forms such as the W-4 (Withholding Allowance Certification) and the I-9 (Employment Eligibility Verification). Hiring even one employee invokes your responsibility to file and pay forms and payroll taxes and each state has its own tax obligations. It’s prudent to record as much data as possible including invoice dates, numbers, amounts, terms, dates and amounts paid or due, balances, and client information in real time. And keep personal and business finances separate! Accounts Receivable and PayableĪlways keep track of what customers owe you and what debts you owe others. Dates purchased, stock numbers, purchase prices, dates sold, and sale prices are all relevant information for inventory records. Maintain records of all inventory! This will help you to forecast for the upcoming year by tracking trends, prevent stealing and misplacing merchandise and keep inventory holdings to a minimum. Writing reimbursable checks and keeping detailed petty cash records are both valid methods of documenting cash expenditures. It is important to record the cash your business spends so you’ll have an accurate number of expenses each year.
How much is coming in and how much is going out and where is it is all coming from and going to.