Inventory control help

Managing your inventory is important to the overall cash flow and financial health of your company. One of the biggest mistakes almost every company makes is buying too much inventory. Holding a lot of inventory will tie up your cash reserves and it can lead to problems for your company as you won't end up making back the value of the products when you go to sell them. The problem is leaving the products in inventory causes problems because they continue to lose their value until they are eventually sold.

Having too much inventory not only causes you to struggle with your cash flow, you will end up paying a lot of money to warehouse these products. When you are paying a lot of money for a warehouse and the products are flying off the shelves in a timely manner, you will lose money.

So what is the solution to proper inventory control? There are a number of different things you can do that will help to improve your inventory and allow you to save money.

First, start with your sales numbers. How much money do you expect to see coming into the company? What were your sales like in the past? Did you have adequate inventory to fulfill the orders in a timely manner? If you don't know what your sales will look like, it will be a bit of a challenge for you to come up with a system that helps you understand how much money you need to put into your inventory and how much you need to plan on holding in order to sustain those sales so you don't end up with backorders and other problems for your company.

Second, understand how much money you need to have set aside to pay for your inventory. When you need to order a large amount of inventory to sustain your sales, will you have the money available? Filling your cash reserves is another important part of quality inventory control and it will help you to manage it properly with the intent to satisfy your customers so they aren't needing to wait for their orders to be filled and they can get it within a day or two of their order.

Third, set a system in place to track your inventory. Do you know what products you are carrying in your inventory and just how much you have? QuickBooks can help you track your inventory and it will help lead to better inventory control. With QuickBooks, you can easily set reorder points for your inventory so you know when you need to reorder products and this helps you avoiding carrying a large inventory of products. Setting reorder points is a great way to keep track of your inventory and to ensure that you will have proper control over your inventory.

Proper inventory control can help to increase the value of your company's stock. Since you aren't wasting money paying for inventory you can put these funds toward other things that can help to strengthen your business.Holding a proper balance of inventory is the best way to ensure that your business will look financially strong and sound. Carrying enough inventory to quickly satisfy the orders that come in will build your reputation but if your customers are put on a backorder list, it will look bad for your business and this isn't going to attract new investors.

The items that sell well and sell quickly you can carry more on inventory than you should for the low-selling items. The ultimate goal should be to remove your inventory altogether and have the products made to order. You will need to look into a bin-system for your inventory control as this helps to make products to order and to make your customers happier.