‘Waiting’ and ‘Unnecessary Inventory’ are two among the seven major wastes, which, according to the Toyota lean manufacturing model should be immediately discarded to achieve business success.
Here are some red flags that indicate it is high time you optimized stock management.
Getting accounting software with stock management could be a great addition to your existing operational tools. You can track the stock level of products as per your orders and customer invoices. With online accounting software get updates on your current stock whenever you want.
Let us discuss why must your accounting software have stock control if your small business is dealing with multiple products.
Automatic Update of Stock level: An accounting software with stock management can automatically update stock level, both outgoing and orders out level, based on Delivery, Invoice and Sales Orders. The same applies for incoming stock or orders-in level which are automatically updated based on Delivery, Payments and Purchase Orders. Consider this a first step towards optimizing stock management. Also, the goods in, goods out identification number for both regular and adjusted stock is automatically sequenced. So, you can depend on the system to keep a clean, error-free record of your stock status.
Stock Adjustments: It is imperative to keep a clear record of your stock adjustments in the case of breakages, returns, transfers from one store to another etc. With online accounting software, you can make such adjustments in real-time. Moreover, a smart accounting tool automates the overall status of your stock quantity based on the adjustments made. With Surf Accounts India, simply add the product against which you are about to make a stock adjustment using product lookup. Add the quantity, and the type of adjustment (the conditions affecting the health of the stock such as breakages, transfers etc) and you are all set. You can also add an extra note against the stock adjustment. To make things easier, Surf Accounts India enables separate entries for adjustments pertaining to Goods in and Goods out.
Stock level alerts during Transaction: Imagine you approve a sales order only to find out afterwards that your stock has reached the Minimum Level. Or, you order for a new set of supplies even though your current asset is enough to meet future customer orders. So, you end up with a surplus that might exert unnecessary pressure on your budget.
To keep you informed about stock levels, your accounting software with stock management triggers an alert message if the current transaction reduces your stock below the minimum level or goes beyond the optimum level. As opposed to manual handling, this ensures both accuracy and time-conservation.
Managing Multiple Stores:Online stock management eases up the process of managing stocks in multiple stores. Take, for instance, you have stocks in three warehouses in Delhi. Now, if you transfer your stocks from one store to another, it is important to keep a record of it in real-time lest you forget about it later. Using a smart accounting tool with stock management facility you can set up multiple stores and register transactions and transfers between them.
Stock Reports: Generating reports in cloud means you can do it at your convenience. Let us see how you can simplify stock management using the following reports.
Stock Levels Report allows you to check the quantity of the goods or raw materials available on the premises of your business or shop.
By running the Stock Ledger Cards Report you can track the movements of your products including their rates, quantities, the balance, and the value of the materials after the movement occurs.
Run Stock Transactions Listing Report to get an overview of the status of your Goods in, the history of the adjusted stocks in your inventory and all the nitty-gritty.
Beyond profits and the sale of stocks, business accounting necessitates the determination of the intrinsic value of the stocks. The intrinsic value is the real value which may differ from the current market value. Your revenue recognition also depends on this factor. By running a Stock Valuation Report, you can get in detail the real values of your products and raw materials.