Top 3 Benefits of Integrating Inventory with Accounting

Inventory management software has become an essential requirement of business owners these days. It not only helps in optimizing your business but also ensures that your warehouse is properly organized. 

This kind of software keeps you informed about the inventory levels in your warehouse so that you never go out of stock. Just as your inventory reaches the warning level, you can easily stock it up again. It comes with auto-track feature which enables you to keep a track of all your items so that you can avoid wastage and check the damaged goods (if any). However, until and unless your inventory software is integrated with your back office systems, it will unable to optimize your inventory and ensure whether the value of your inventory asset matches the value of your stock on the financial reports. 

For proper inventory management augmentation, leading companies are integrating their inventory management system with the accounting system and back office directly. A competitive edge is gained with such integrations and hence the company can easily plan, execute predictably with clients and reduce the costs of labour and errors of manual reconciliation.  

Optimization of Inventory:

Customers look for fresh and new products and they expect your store to always have all the items in stock. Thus, once your inventory is integrated with the accounts, there will be lesser labour expense in your business since both the software are connected which helps both the departments stay updated with the required information. Starting from planning for the purchase and sales order to real time updates, the integration of inventory and accounting will make the entire process simpler and time-saving. 

Tracking Reports:

Accounting software keeps a track of all the products, sales and purchases. This feature is indeed useful for an inventory software since having a record of the amount of sales and requirement of products can be evaluated easily and hence the expenses can be tracked along with the details of all the reports on the level of inventory, the bestselling items, number of sales taking place and expenditure of the products. Thus, the integration boosts the functionality of an inventory management software. 

User-Friendly:

Without the need of going through a number of software, you can simply rely on your inventory as a one stop solution for all needs. With all reports such as accounts of the sales of each product, total expenditure in purchasing them, etc in one place, you will not have to shuffle through various software to find your answers. This makes the software user-friendly as the employees can easily check all the reports of both the departments (accounts and inventory) through a single software thereby saving time. Thus, both the accounting and the inventory departments will be informed of each other’s business and hence can easily coordinate with one another. If you update the product number in the inventory management system, it will automatically get updates in the accounting, thus the entire process of calculating purchases, sales, expenses and gains becomes easier.