Benefits of Integrating your Inventory Management Software & Accounting

Advantages of integrating your inventory management software and accounting systems

Any company, and I’m presuming every company falls into this category, that wants to expand needs to have a customized inventory management software. A software, such as an inventory software, that helps you track all your expenditures (sales, profits, losses), which helps in SWOT analysis.

But although the inventory management software is useful, it might not help you a great deal if it is not integrated with back-end systems. Back-End systems coupled with the inventory management software provides you with detailed information about inventory assets. Not only will you have ‘sight’ of what is in the inventory but also have detailed report of how much it is worth, number of purchased items and the profit margins. You can use this information to list the number of items with the highest purchases so that you can order them frequently.

Basically, no one wants to order items/services that people aren’t buying, right?

Here are the benefits of integrating your inventory management software and accounting systems.

It helps in reconciliation of data

If you’re running a company, you know how important data is. In fact, you may have spent more money in securing that data. This is because that data can be used to benefit or destroy your company. A recent study found out that companies can save millions from just having a good privacy policy.

This is why most “big” companies are hiring professionals to come up with a good privacy policy plan. At the same time, use their professional skills to come up with stronger firewalls.

Accounting and inventory management software provides you with the same high-valued data. The kind of data that will help you determine:

• Where your company will be in the next 5 years.
• What product/services you need to do away with and what you should have.
• What cost of production you should do away with.

Also, the data collected from inventory accounting software will help provide accurate financial reports to your customers. A recent study by Label Insight showed that 94{cb377218d5687e54e8ee9149518f87201a393a7c1db5e8076e9d750029ec0dc3} of consumers are likely to be loyal to a transparent brand.

Thus, by providing this report, you are building trust between you and your customers.

Increases Profit Margins

Every business owner will tell you that it is quite difficult to manage labour. In fact, at times, it is quite expensive. But, doing away with labour is inevitable. There’s no production without the labour input.

But is there a way to minimize labour costs yet maintain or even improve quality?

Sure! Through the accounting software inventory management.

Not only does it help you get accurate data but also reduces cost of production (labour). Once you have integrated the system, you will just need a couple of people familiar with the software working on it. Thus, increasing profit margins.

Keeps Supply Chain Partners in The Loop

Apart from customers, you can’t do without supply chain partners. In fact, they are the people who provide you with the product/service you are rendering to your customers. Thus, they should have clear sight of your inventory levels.

But it is quite hard to do it manually. Not only is it time consuming but also cost a lot. This is because you will have to hire professionals to analyse data and provide them with real-time information.

Thus, the easiest way is to have a system that integrates your company to all other operations. Accounting and inventory management software that provides real-time financial information to your customers.