Are you looking for inventory management software to complement your accounting software? Before you decide on which inventory management platform to use, you should first ensure it can be integrated with your accounting application.
If your inventory information is not digitally connected to your accounting system, you will have a tough time aligning your warehouse’s stock on hand with the inventory asset value in your financial reports. As a result, chasing down errors and keeping your finances up-to-date will be time-consuming and error-prone.
An accounting system helps you manage your business’s finances. An inventory management software helps you maintain your product inventory levels. Integrating these two business components together is an important step in growing your business and, if done well, can provide you a in the market. Your business can minimize risk, plan effectively, and reduce errors arising from time-intensive manual reconciliation.
Still not yet convinced? Let us take a look at the top 5 benefits of integrating your accounting software with an inventory management software.
1. Prevention of Stock-Outs and Waste with Inventory Optimization
Knowing the right amount of inventory to stock is important to keep both your customers and investors happy. On the one hand, your customers want their products to be delivered as quickly as possible. If your warehouse faces a product shortage, this could result in missed sales opportunities and unhappy customers. On the other hand, having excess stock results in additional storage and handling costs. Investors also want your business to use your cash on growth – having too much working capital tied up in inventory adds financial risk to your operation. It is not a simple task to balance these conflicting objectives.
Integrating your accounting and inventory software can help you streamline the data collection process and achieve inventory optimization. Your business will have real-time visibility and accurate data on its operations, which allows you to gather valuable insights like sales forecast and cash flow reports. With these insights, your business can plan for the right amount of inventory and avoid stock-outs and waste.
2. Accurate Financial Reports
Every business needs to reconcile their inventory data and their accounting data to identify and resolve any possible discrepancies. The recorded asset value on your balance sheet needs to match the physical inventory value in your warehouse. Maintaining an error-free financial statement is not only important for tax purposes, but also for key stakeholders and investors to have an accurate view of the company's financial health.
Reconciling inventory transactions against asset values manually requires a significant effort from your accountant or bookkeeper. The more inventory stock your business orders and stores, the more time-consuming it is for them to compile the statement. Also, there is a higher risk of errors due to the large manual transfer of data.
Integrating your inventory software with your accounting system ensures that every sales order, purchase order, or business activity gets captured in your accounting system. This removes the risk of human error, inaccuracies from delayed information, and more, resulting in better overall integrity of your company’s financial reports.
3. Reduced Labor Expense
The most significant expense for many businesses is your labor costs, which can account for as much as 70% of total business costs. Action needs to be taken to reduce labor-intensive touchpoints as much as possible.
Connecting your accounting and inventory software reduces time-consuming manual entry of data, as well as the transfer of data from one software to another.
4. Easy Reconciliation of Data
Data can make or break a company. Using the wrong data may result in inaccurate planning of strategies to penetrate the market, hence creating higher cost instead. Using the right data will allow you to better strategize and generate higher revenue and profit for your business.
Integrating your accounting and inventory software allows your data to be accurate and high value. Your information is updated in real-time and the need to digitally or manually transferring of data from one software to the other is eliminated. This also reduces the chance of human error. When there are disconnects in the workflow, errors tend to be difficult to trace and identify, creating problems for the business if they cannot identify what is wrong.
With trusted data, you can plan which products or service you should continue to sell and which you should stop selling, allowing you to reduce costs by eliminating unnecessary production. Business projections can be made anytime as reconciled data is available immediately.
This is achievable with accurate and insightful data that arises from streamlining your business by integrating your accounting and inventory software together.
5. Automation of Repetitive Tasks
The integration of two of the most vital components of your business – accounting and inventory – help your business to function better. Time is saved through process automation and the need for manual work is reduced. Both your accounting and inventory teams are able to work with real-time data at the same time, minimizing confusion and human error.
Real-time data allows important decisions to be made quickly. Planning inventory management strategies is made easier with valuable insights gained from using the software. Accurate financial reports can also be obtained easily.
How can you get started?
In order to maximize the benefits of your accounting and inventory management software integration, it needs to be real-time, easy-to-use, flexible and scalable.
Here at Sweet, we have the perfect solution for you. Sweet is an inventory and order management platform designed for your small and medium business needs.
Our software integrates with widely used accounting software like QuickBooks Online and QuickBooks Desktop. Here are some of the feature of our integrations:
• Centralize your accounting data with Sweet’s online inventory management platform automated sending of invoices, purchase information, payments and customer information to the accounting system.
• Gain real-time visibility with the automatic sync of order and inventory data, providing your business with an accurate overview of the stock movements and financial performance.
• Automate account receivables by allowing customers to pay on Sweet’s B2B eCommerce portal with the payment being synced directly to your accounting software, saving your precious time and increased accuracy.
To find out if Sweet is a good fit for your business, click here for a demo.