The Small Business Owner’s Guide to Keeping Track of Inventory
How often does your small business track inventory? Have your current practices caused significant issues in your small business?
If you are a small business owner, you might have trouble with inventory management. Inventory management helps a business source, store, and sell its inventory. Learning how to manage inventory helps ensure your business has enough items to sell.
Are you looking for a way to keep track of your small business’ inventory?
We know that running a small business is not an easy task to do. If you are feeling overwhelmed by keeping track of your inventory, then you have come to the right place. Keep on reading and learn these easy and efficient ways to keep track of inventory for your business.
1. Make an Inventory Tracking System
If you are a small business owner, you should already have a system for taking inventory. The first step in doing this is to separate your inventory into categories. Start with inventory that is the most essential for your business.
The best way to approach categorizing your inventory is by segregating it. You can use any way to name these groups, such as Group 1 to 3, A to C, or any name you see fit. Separate your inventory according to its cost and turnover.
2. Track Inventory Information
Tracking information includes keeping proper records of everything that happens to your inventory. Your inventory tracker should contain all sorts of information, from its country of origin to barcodes. You should also jot down SKUs and lot numbers.
A great way to know the cost needed for your small business is by tracking inventory information. For instance, keeping data such as the shipping cost can help you learn factors that change the overall cost. These factors include things like changes in season, demand, and scarcity.
Always Restock Yourself
Many vendors and suppliers offer automated reorders. While this may seem like a good thing, this can increase the business cost. But you should always note that some products are seasonal or sometimes have low demand.
Having automated reorders from suppliers can take up space in your inventory. This is because high turnover can become low, depending on demand and season. Taking time off and choosing products to buy can help you cut costs.
Track Your Sales
This tip seems like common sense, but business owners don’t focus on sales information. Tracking sales information isn’t only about keeping track of your profit. You should always keep inventory information on items sold and their number.
Keeping track of sale information can help you analyze this data later on. This data can help you come up with strategies to increase profit or cut costs. For instance, knowing which items sell fastest or have higher turnover helps profit.
3. Always Go 80/20
A general rule all businesses should practice is the 80/20 rule for inventory. This means that 80% of your profits should come from 20% of your stocks. This is why keeping track of inventory information helps you understand their turnover.
4. Always Be Consistent
Having the best inventory tracking system won’t matter if you’re not consistent. Make sure that your inventory tracker system has standard processes employees follow. If one employee does inventory tracking in a different way, this may cause a discrepancy.
Avoid having problems during your audit by having a consistent inventory tracking system. All employees should have the training to ensure that they receive and record stocks in the same way. Remember to count and check all inventory every time they arrive and get sold.
Audit Your Inventory
Your small business should do a comprehensive checking of inventory count. This should be done every month, quarterly, or once a year. Make sure to check inventory on a regular basis to see if the numbers you have match up with the actual stock.
5. Start Investing in Business Inventory Management Software
If you are a small business, you might not have enough manpower to check and recheck stock on a regular basis. Managing stock through manual counting, taking notes, or spreadsheets may become overwhelming. This is why you should consider investing in business inventory management software.
There is a lot of free business inventory management software for your business. Business management inventory software can help you keep track of your inventory. Having this not only helps you manage and track your inventory, but it also gives you more time for other things.
Having inventory management software helps you with time-consuming menial tasks. Some management inventory software also has other things, such as analytics. Having these analytics will save you time analyzing your business inventory.
Choose a Software That Integrates Well
When choosing an inventory management software, make sure that it can integrate well. A great way to choose this is choosing a simple and easy inventory management software. Having one that you can access from your mobile phone is also handy for when you need to check around.
Having advanced inventory management software isn’t always a good thing. Having complicated software might mean months of training to learn.
This can also slow down the day-to-day process of your small business. Ease of use should be an important thing to look for when choosing management software.
When choosing a management software, make sure it needs minimal or no training. A great inventory management software is something that should be good to go. Choosing software that places importance on ease of use will help you save time and effort.
Keep Track of Your Inventory Today
These are only a few of the ways you can track inventory the right way. Follow our guide, and you are sure to stay on top of your small business’ inventory management.
Are you looking for more ways to increase efficiency in your small business with minimal effort? Check out our other blog posts for more business tips to help yours flourish.
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