Companies, especially manufacture, depend on inventory to meet the client order. Inventory is the company asset that enables the business to plan and meet the budget. Keeping accurate inventory records is a must for the company since it has some benefits:
- Planning
Accurate inventory records provide the data whether you can meet the customer’s request or not. Owner will soon recognize the condition when new items should be ordered. Inventory record is also used to identify the trend to make some basic predictions.
- Customer service
Having proper inventory records means the owner can serve the customer request quickly. Most customers will impress with fast response time. The capability to respond the inquiries and fill orders quickly, makes the company serve more customers, more inventory movement, higher profit is the result.
- Expense control
Inaccurate inventory records will cause the failure for the company to deliver an item on time or close to the deadline. This will make the company pay extra shipping expenses.
Inventory record enables owner to make sure the records are updated. There are two types of inventory system:
- Periodic inventory system. This system needs time to time update by counting inventory physically. The benefits of periodic inventory system are:
- less cost needed
- do not require electrical equipment
- Perpetual inventory system requires straight away records to update inventory records. This system is usually applied with the electronic and POS system. The benefits of perpetual inventory systems:
- detect losing items promptly
- precise records
To prepare the accurate inventory management, most companies rely on the software to keep the record of inventory, vendor, order, and others. Some business owners use Microsoft Excel because it is quite familiar and cheaper. However, Excel has some limitations, such as lack of a comprehensive feature to analyze data, update inventory automatically, or display the current trends. These will no longer applicable when the company grows bigger and need an advanced solution. The best answer is to implement the affordable and user-friendly software. Like Zahir Accounting, it provides simple features that allow the user, even without accounting background able to operate it. Zahir Accounting has powerful inventory management to meet any business needs. It also allows the owner to share the data to ensure accurate and updated inventory record.
