The complexity of business is increasing day by day, there is so much important data to be efficiently dealt with. Inventory management software is a must for a business of any size and so is an accounting software. Accounting software defines the current standing of your company while Inventory Management software is used to maintain a healthy warehouse and track all the shipments and orders.
These two entirely different components of your business can be incorporated for better management.
Integrating Inventory Management with Accounting Software provides a competitive edge to the business as it minimizes risk, saves some money and automates the processes. It is feasible because both the departments have many common transactions like sales orders, purchase orders, bills, invoices. So, why not fuse both the databases into one and make things easier?
Five Advantages of Integrating Inventory Management and Accounting Software for Small Business:
1. Prevent stock-outs and excess stock
Optimizing inventory helps to maintain customer satisfaction and avoid wastage of money. Customers want the products that are in latest trend. Storage and handling costs are associated with every item stored. So collecting excess inventory will lead to goods sitting on shelf and money being wasted on them. On the other hand, having a shortage of goods will lead to canceling orders and disappointing customers.
The integrated system of inventory and account will help in better analysis and provide valuable insights like the sales forecast, cash flow. Real-time visibility will help to plan out the right amount of inventory required for demand, purchase orders and sales.
2. Inventory visibility to Supply-chain partners
Now, this is a new trend to provide inventory level visibility to the supply-chain to manage customer shipments. To do so, Inventory management software must be integrated with Accounting software but also supplier systems.
By doing so, you are not only showing them that you trust them with your information but also ensuring that you don’t have to put in extra efforts to optimize respective supplier’s product level in your stock. They can now see your fluctuating inventory levels and make sure that you have enough to fulfill the customer demands. Also, this removes the extra load, work will be divided efficiently and fewer mistakes.
3. Reduce labor expenses
A lot of money is spent on labor expenses. Redundant works not only waste time and energy, along with it money is also wasted. So all these unnecessary touch points are reduced as all the systems are working together and chances of rework are reduced.
4. Compiling accurate financial reports
Every business has to check inventory with accounting data to avoid any kind of discrepancies. It is very important for investors and companies investing public markets. Integrating the transactions of your inventory system with the back-office chart of accounts helps to remove complications, mistakes and delays.
5. Enhanced Automation
Integrating two of the most vital softwares of your business into one platform makes thing a lot easier for you. The human-work is reduced and most of the important decisions are based on the output from the two-in-one software.
Accurate financial reports can be obtained effectively through the integration of inventory transactions with the back office chart of account. Real-time data available increases automation in the business.
In Conclusion:
Effective decisions like these make your business superior to competitors. Once you integrate both the software into one you get a multitasking system which produces figures which are extremely precise. Two different data when fused together produce much more analytic numbers. Without further delay, implement the integration of inventory management and accounting software, and enjoy the game-changing results.