Accounting

10 Reasons Why Accurate Inventory is Important

A free whitepaper from Brightpearl to help you to get the most out of your inventory.

Introduction

If you’re a small business selling inventory then you are sure to have come across some of the pitfalls it entails, but getting it right could be more important than you think. Accurate inventory underpins the rest of your business from making sure you can come through on promises to your customers, to getting your accounting right for those all-important audits, whilst inaccurate inventory causes inefficiency across your business. So take a look at our ten top tips for getting it right. Remember, you’re not alone... Brightpearl’s business management software, has a team of experts on hand to help you sell more and sell better. Contact us, visit our support portal, or watch our YouTube channel to learn more.

Andrew Mulvenna Brightpearl Co-Founder

Chris Tanner Brightpearl Co-Founder

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1. Don't miss sales due to out-of-stock items

If you know what's in stock, you'll also know what's not in stock. If you're relying on a walk around the warehouse or shop to make your Purchase Orders, then you're relying on your memory to flag up items that you've run out of. Using an accurate stock report you can quickly see what's low, compare it with what's been selling well and get those re-orders placed in time so that you don't run out. If you're interested in exactly how much to buy each time, then do some background reading into the principle of Economic Order Quantity, EOQ.

Brightpearl lets you set “minimum stock levels” for each item, and display all items that are currently below that level. With just a couple of clicks you can place and send a Purchase Order for more.

2. Don't waste cash in overstocked inventory

Running a successful retail or wholesale business is all about spending your cash wisely. You need to buy only what you need of any one item in order to keep sales going, and prevent stock-outs....