Inventory management is a crucial aspect of running a product-based business, and QuickBooks Point of Sale (POS) can be a valuable tool in this endeavor. To ensure efficient and accurate inventory management, consider the following best practices:
Thoroughly Set Up Your Inventory Data
Ensure that your QuickBooks POS inventory system is populated with comprehensive data for your inventory. This includes essential details such as SKU (Stock Keeping Unit), cost, manufacturer or supplier information (QuickBooks POS allows multiple vendors for a single item), location, and category. Additionally, tagging items with attributes like color, brand, and season can assist your sales team in locating products easily. Promptly enter inventory into your POS system upon receipt to avoid delays.
Meticulously Handle Inventory Transfers
If your business operates in multiple locations, transferring stock between branches is common. To prevent discrepancies in inventory levels, meticulously record stock transfers. QuickBooks POS Multi-Store offers a feature for transferring goods between locations, generating reports for the receiving branch to cross-reference. Implement standard operating procedures (SOPs) to minimize errors, such as creating separate transfer reports for each box of items sent.
Track Returns to Manufacturers or Suppliers
When returning goods to manufacturers or suppliers, it’s vital to track these items in your system even if they are not physically on your sales floor. Neglecting to do so can lead to avoidable losses. Record returns in your POS, and when the items come back, ensure they are accurately logged. Consider maintaining a separate register to document and file all stock returned to suppliers.
Utilize QuickBooks POS Reporting
Maximize the reporting capabilities within QuickBooks POS to gain insights into your product performance. Identify top-selling items and products with slower movement, enabling you to optimize your inventory orders. Sharing this analysis with suppliers can foster collaboration and provide valuable information about how your stores compare to competitors.
Conduct Regular Stocktakes
Although stocktakes can be time-consuming, they are essential for maintaining accurate inventory levels. Schedule periodic stocktakes to identify and rectify discrepancies, which may result from errors during sales finalization, data entry, theft, unrecorded returns or repairs, spoilage, or other factors. Count everything systematically to ensure a well-organized inventory.
Implement a Check-and-Balance System
To minimize human errors, establish a check-and-balance system where two employees independently review each other’s work. While this may seem like double handling, it is an effective way to quickly detect anomalies and inconsistencies, saving both time and money in the long run.
Additionally, when importing items sync QuickBooks POS with QuickBooks desktop, keep in mind that items don’t automatically transfer unless imported. This process makes items in QuickBooks Desktop inactive and creates a quantity adjustment in both software to transfer On-hand Quantity to Point of Sale. Discrepancies between reports may arise due to incorrect inventory setup, manual adjustments, or active inventory items in QuickBooks Desktop. To reconcile these reports, compare the Inventory Valuation report in Point of Sale with the Balance Sheet Detail report in QuickBooks Desktop, line by line, to identify any discrepancies.