Many business owners are not too keen on doing or getting involved in inventory management. Well, it’s not exactly an exciting task but nonetheless very important in keeping the cash flow strong. A good inventory system means business funds are maximised, keeping all best-selling products consistently in stock while those that are not will only take the necessary shelf space. It also means greater profit as your business produces happy customers. Sales staff can check product availability easily and instantly, which translates to shorter wait time for customers.

With such benefits, it is recommended that even with an inventory manager or a bookkeeper Melbourne running the warehouse, you should be aware of how inventory management works as well as how to fix issues that may arise. Manage your inventory properly with these steps:

1. Determine which products are popular and which are not. Which ones should you stock more often and how much supply is enough? To come up with a list, refer to past sales reports. Don’t forget to consider other factors (like holidays) that probably made a product best-selling. Also, anticipate which ones are likely to sell by checking out trends. Make reasonable projections and keep in mind that overstocking can lead to loss.

2. Monitor product restocking. Some vendors offer to restock and reorder products themselves. This means less work for you but it may lead to loss or miscount in the inventory. It can also result to expired inventory as products may not be rotated properly on display. As much as possible, even with extra manpower required, take care of your own inventory to prevent such things from happening.

3. Use spreadsheets. Lotus 123 and Microsoft Excel may be enough for simple inventory requirements but for bigger or complex inventory needs, go for specialized and sophisticated accounting programs like Peachtree or Quickbooks. This will make the process faster and easier and the data, more secured. Get good software to handle back-up, too, just in case something happens to your inventory files. Not only your bookkeeper Melbourne will thank you for using the best technology for inventory, your business will also operate with so much ease.