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Inventory management being an integral part of business

October 05, 2022

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Inventory management being an integral part of business 


As numerous businesses are growing globally, entrepreneurs are interested in futuristic solutions for handling their finances and inventories. This signifies the importance of inventory management and accounting software for the smooth run of businesses. Inventory management along with online accounting software gives a competitive advantage to the organizations in the current financial circumstances. 

  • What is inventory management?

Inventory management is the process of purchasing, storing, and sales of stocks in businesses. This includes managing raw materials, finished products, or other essential components related to the organization. The primary goal of inventory management is to ensure that there are enough products, and materials to meet the necessary demands without overproducing inventories. Inventory management is essential in tracking all shipments, and orders and handling the health of inventories in the organization. 

  • Advantages of inventory management

For a business to run successfully, it is essential to have a precise inventory management system. An accurate inventory management system helps to keep track of stocks and to prevent any mistakes. The key advantages of effective inventory management include the following: 

1. Effective inventory control

Better inventory management can be done when we are aware of the stocks already present and the quantity of inventory required further. Also, by keeping track of stocks, overselling can be avoided.

2. Better insights into inventory management

By tracking inventory and stocks, it is easier to identify sales patterns, and expiration dates and also to track recalled goods. 

3. Enhancing relationships

Accurate inventory management enables us to know which products sell well among all and this information is beneficial in bargaining with the suppliers for better rates. 

4. Avoiding excess stocks and stockouts

With better inventory management, an organization can prevent carrying more inventories than needed and also reduce the days an item is out of stock. 

5. Increase in productivity and profit

Effective inventory management helps in saving time that can be spent on other tasks which increases productivity. Also, a better understanding of availability and demands results in increased inventory turnover and higher profits. 

6. Organized warehouse with inventory management

Labor costs and expedites can be minimized when a warehouse is kept well organized with inventories according to demand, and items sold frequently. 

  • Why is it fundamental to have an inventory management

A company's health depends on effective inventory management since it lowers the danger of stockouts and erroneous records on stocks on hand. In order to guarantee that there is always adequate inventory to satisfy client orders and that a shortage is properly announced, inventory management helps to recognize patterns and act accordingly. Inventory turnover is one indicator for effective inventory management. It determines how frequently stock is sold over time. Integrating inventory management and accounting software helps in automating tedious operations, eliminating risks, and smoothing the operation of accounting and inventory handling. Accoxi is a potential online accounting software that helps with inventory management, accounting tasks, branch accounting, sales, purchase management, and many more. 

  • Benefits of inventory management system integrated with accounting software 

By integrating inventory management with accounting software, every business can scale up to more success. Some of the benefits of an inventory management system along with accounting software are as follows: 

1. Avoid stockouts and wastage with inventory management

For every business, inventory management is essential to meet the needs of investors and customers. Also, it is necessary to know how to have an adequate quantity of inventory and not have a surplus of them. Stock out of inventory can affect the productivity of an organization whereas their surplus can lead to additional expenses. By integrating inventory management software with accounting software, businesses can expedite and organize their data collection process. With small business accounting software like Accoxi, businesses can get real-time visibility, insights on sales forecasts, and accurate data which can eventually help in preventing shortages and wastage of inventories. 

2. Lesser labor expenses with inventory management system

Labor expenses constitute to be one of the major expenses in an organization. By connecting inventory management and online accounting software, the time and efforts of many resources can be saved. With cloud-based online accounting software like Accoxi, unnecessary expenses can be lowered, and also chances of reworks can be reduced. 

3. Inventory management and supply chain partners

Inventory management coupled with accounting software and supplier systems can be helpful in managing client shipments effectively. Online accounting software like Accoxi comes with features like inventory management, core accounting, easy invoicing, and many other which aids in reducing the efforts required in accessing the amount of inventory, determining sufficient stocks, and streamlining tasks efficiently.

4. Handling financial records accurately

In order to portray the financial situation of the company accurately, financial statements must be very precise. When data are handled manually, there is a high risk of errors that may take place. Also, each firm has to compare its accounting data with inventories to identify any potential anomalies and correct them at the earliest. Every business transaction including sales and purchase orders is precisely recorded in the accounting system with the help of an inventory management system. Accoxi is an effective GST accounting software that can take up both these tasks simultaneously and also help with generating GST reports as required. 

5. Automate routine tasks effectively

With little to no human labor, automating routine tasks can help in saving time, effort, and expenses in the firm. Moreover, by integrating inventory management and accounting software, the performance of the organization gradually increases. 

The bottom line 

Inventory management is an inevitable part of businesses. Finding the right online accounting software that can help with inventory management productively is a tedious task. With the finest features in the industry, Accoxi is cloud-based accounting software that can be the best solution for all your needs. 

If you are looking to elevate your businesses with enhanced inventory management and accounting, get to know Accoxi today. Connect with us to know more. 


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