Home / Blog / Keep Your Inventory Accurate

Keep Your Inventory Accurate

Here are a few tips to help you find the right balance for your inventory mix.

Accurate inventory is crucial if your business relies on the sales of products. The golden rule; 80% of your profit will come from 20% of your inventory.

Keep Your Inventory Accurate

Here are a few tips to help you find the right balance to get you to the 80/20 rule.

Is there a time of year when items don’t move as fast? Make sure you are not overstocking. This can lead to a decrease in cash flow; profits decrease due to discounting items, products expiring, and an increase in some of your overhead costs. You can also see expenses increase and the loss of sales/customers when you don’t have enough products in stock. Run reports from prior years and look for monthly sales trends. These numbers can help you decide when to order a product.

Once you have your product, you need to keep track of it. Make sure you find a reliable and user-friendly electronic inventory system. Shop around before you commit. Reading customer reviews or articles online can help you narrow down the choices. Contact the company that manufactures the system and ask if they can give you a demo.

Do a physical count of your products at least once a year. The size of your warehouse and the nature of your business will determine how often you want to do a physical count. You can also hire a company to count your inventory for you. A physical count keeps the numbers accurate and can identify damaged goods and detour employee theft.

If your bookkeeping isn’t delivering that now, give us a call! We’ll help you keep your cash flowing!

Contact us today!

Bookkeeping and Accounting Services

ZümiFi is a bookkeeping and accounting services company that specializes in cloud-based solutions for small businesses. We offer various services to help businesses manage their financials, including bookkeeping, accounting, payroll, tax preparation, and cloud integration services.

We believe in keeping things simple and efficient, using the latest cloud-based technology to help our clients stay on top of their finances. In addition, our team of experts is passionate about helping businesses succeed. We work closely with our clients to understand their unique needs and provide tailored solutions that work for them.

At ZümiFi, we believe that relationships matter and are committed to building long-lasting partnerships with our clients. We are dedicated to providing exceptional service and support and pride ourselves on being responsive, reliable, and easy to work with.

If you’re looking for a trusted partner to help you manage your finances, look no further than ZümiFi.