Are you having a hard time getting a hand on your inventory in real-time? QuickBooks’ online inventory management organizes what’s coming in and what’s coming out of your business.
As cloud accounting programs continue to evolve, more improvements came in, making your cloud accounting tool more effective and efficient in business financial management. A case in point is QuickBooks. Although QuickBooks has an online inventory system in place, it has enhanced its online inventory feature to further accommodate the needs of its users.
Inventory management is a system that monitors the sale, purchase and payment related to inventory. Having a well-planned inventory is necessary because it ensures the wise use of resources. It also allays entrepreneurs’ fears about the low supply of goods, which could ultimately affect business performance.
Small businesses may simply require a basic inventory management system. However, as your business grows, you might need to focus more on your inventory. Otherwise, the production of goods might be interrupted - and we all know where that could eventually lead to. This is where the importance of the QuickBooks online inventory system comes in.
With the online inventory feature of QuickBooks, you can now track quantity on hand. You can also adjust the value and quantity of your inventory in just one go. And what’s more, this feature also makes it easy for you to generate and receive sales reports. Put all of these together and you’ll have an inventory system that empowers you to stay on top of your business.
Upon entering your first item in the inventory list, QuickBooks adds two accounts: Inventory Asset and the Cost of Goods Sold (COGS) account.
Inventory asset in QuickBooks Online monitor the values of your inventory on hand.
Upon purchasing an inventory item, your bill debits the Item’s Inventory Asset account and credits your bank or credit card account. Since the item is listed as an asset you can sell, it is not then debited to an expense account.
There are two ways to adjust your inventory quantity.
Managing your inventory is not easy. But if you have tools, such as the QuickBooks online inventory management to help you get through it, you can effortlessly breeze through inventory management issues. Can you imagine what that could do for your business?
Make a difference in your business today! Get in touch with our qualified advisers to know more about cloud accounting and inventory management solutions for e-commerce businesses .
This post was first published 14 December 2015 and edited 10 August 2020