Why use inventory?
When we launched Inventory back in March, we showed our customers how they could use it to help their businesses thrive.
Managing inventory can be a challenge for any business. Our customers appreciate having visibility over what products are selling well, and which aren’t.
Customers using Tracked Inventory say they are making better decisions about their stock levels. They’re ordering stock at the right time, and they always know which products are selling well.
Unsold stock means money is sitting on your shelves gathering dust. You also have to keep track of which products sell out so you can reorder in time.
Our customers are also keeping their accountants happy. Xero automatically calculates their cost of goods sold. This means they can easily work with their accountant to make product decisions that improve their profit.
Untracked Inventory is still available for businesses that only provide services or buy items when a customer orders them. Interestingly, we’ve seen an increase in our customers using this method too.
A new inventory report
If you’ve been using Inventory for the last few months, now might be the time for an inventory count (stocktake). Today’s release includes a simple inventory list report that will help you with this.
Our new Inventory Item List report provides a snapshot of the products you currently have in stock. You can quickly view the total value of your stock and assess what products you have available. This makes it easy to tell which products you need to order.
You can also use the new report as the basis for an inventory count (stocktake). You can compare the report to what you have in your warehouse or on your shelves. If you have any discrepancies or damaged stock you can enter these using inventory adjustments.
A regular inventory count is a great practice to make sure you keep on top of your stock. It confirms the quantities you think you have versus what you actually have.
Accountants can use the new report for reconciliations
Xero makes it pretty hard for inventory accounts to go out of balance. In fact, once you’re up and running, it just won’t happen. However, when converting a client from another system, there are times when opening balances can get out of whack. The Inventory Item List report is perfect to track down any anomalies.
What’s coming up in Inventory?
We’re working on a comprehensive inventory report. We’ll calculate profit margins on each of your products. You’ll also be able to see all transactions for each product. Advisors can use the report for thorough financial reconciliations.
We’re also going to introduce the ability for you to hide inventory items you no longer use. This will be handy for when your product list evolves over time.
Let us know in the comments how you’re getting on with Inventory. We’re keen to hear your feedback. And for more information on this release, as always you can refer to our Release Notes.