Inventory Related Terms in QuickBooks

Published September 23, 2021
quickbooks inventory management

QuickBooks is a remarkable software designed to perform a myriad of functions. From payroll processing to financial statement preparation, QuickBooks can do it all. The software’s primary objective is to help companies keep track of their account payables and receivables.

There is, however, one more feature that makes QuickBooks an unmatched success: inventory management.

With over 2.2 million worldwide users and domination of over 80% of the US market, QuickBooks enjoys a stronghold reputation. And rightfully so. Incorporated with robust and cutting-edge features, the automated accounting software is nothing short of a masterpiece. It has helped various small and big businesses establish presence in some of the most competitive global industries.

Every growing business needs an automated partner to stay on top of financial and functional performance. This is where QuickBooks comes in. Many startups are actively using QuickBooks Enterprise, Pro, and Premier Versions to meet the current business needs. As the modern-day customer gets more tech-savvy and demanding, companies need to stay relevant in the market.

QuickBooks helps businesses manage and consolidate all kinds of financial and accounting data. It offers full autonomy and controlled access capabilities to help users keep their confidential information safe on the cloud.

The QuickBooks inventory management software is no less. To offer your customer the desired product, you need to make sure it’s available at the back-end. You have to polish your inventory management skills and make your business a well-oiled machine.

The absence of a well-defined inventory management system can bring your oiled machine to a halt. Moreover, many business owners misconceive that inventory management is only about stockpiling products. In contrast, several nitty-gritty elements fall under the inventory management function.

In QuickBooks, you can easily manage, control, and modify all types of inventory-related tasks at your fingertips. Here are some terms to get you started:

1. Cycle Counting

Inventory auditing is an essential tool to ensure that your stock is up-to-date, reliable, and compliant with the QA and QC codes. In QuickBooks, you can keep tabs on cycle counting to sample small amounts of inventory using cross-references. This helps you make sure that all the products match up by getting a quick snapshot availability status.

You can categorize different types of products in QuickBooks and reflect the availability status whenever required.

2. Inventory Control

This term encompasses the entire task of overseeing, controlling, managing, and assessing a business’s possession of products. QuickBooks allows you to mitigate inventory waste and errors by identifying accurate demands and buying patterns.

3. Carrying Cost

Expense management is one of the most popular features in QuickBooks. Businesses love QuickBooks as it helps them save innumerable operational costs every step of the way. In Inventory Management, carrying costs are referred to as the total expense associated with expired or unsold inventory in a given period.

Carrying costs is dreaded by every inventory manager. No business wants to see their over-stocked products going to waste. This is why you should deploy QuickBooks. The advanced and automated inventory management tool can perform efficient SKU management. It can update stock availability and unavailability status in real-time and help you earn colossal turnarounds.

You’ll see carrying costs as a percentage of the total inventory value.

4. Stock-Out

When you’re out of stock or unable to meet customers’ demand due to supply shortage, it is known as stock-out. Stock-outs happens for different reasons and it’s not always the business’s fault.

However, it’s your responsibility to manage sell-out and no longer available items. Using QuickBooks, you can stay updated on unavailable inventory ahead of time. You can prepare for incoming stock-outs and re-order products to avoid delivery delays.

QuickBooks Inventory control software also enables businesses to prepare for numerous other inventory events including supply-demand gaps, pricing issues, and damages. It can track delivery delays and supplier interactions for automatic quantity updates.

Here are some amazing inventory management tasks QuickBooks can perform and help businesses eliminate the need of hiring a designated inventory manager:

  • Track and manage Bill of Materials
  • Categorize main and sub-assemblies
  • Manage PO and SKU tasks
  • Track goods, backorders, sales orders, and receipts in real-time
  • Update you about negative stock items
  • Identify, create, and track inventory stock in multiple bin locations, and more.

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