Inventory Related Terms in QuickBooks

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 a masterpiece. It has helped various small and big businesses establish a 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 use QuickBooks Enterprise, Pro, and Premier versions to meet their current business needs. As modern-day customers become more tech-savvy and demanding, companies must 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 must ensure it’s available at the back end. You must 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 inventory-related tasks at your fingertips. Here are some terms to get you started:

1. Cycle Counting

Inventory auditing is essential 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 ensure all the products match up by getting a quick snapshot of the 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 the total expense associated with expired or unsold inventory in a 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 happen for different reasons and are not always the business’s fault.

However, it’s your responsibility to manage sell-outs 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 to hire a designated inventory manager:

• Track and manage the 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.

Hire the Best QuickBooks Desktop Hosting, Remote Access, and Cloud Services at gotomyerp

If you’re interested in deploying the latest QuickBooks Desktop 2021 edition at your CPA firm, we’re your go-to partner. As the best QuickBooks hosting provider in the US and Canada, gotomyerp successfully provides cloud-hosted QuickBooks products and software integration services at the best prices.

Our finest QuickBooks cloud-hosting services are coupled with our expert team to help you automate your accounting unit.

To get started, call us at (877) 888-5525 or try a live demo today!