More than ever, competitive businesses are acknowledging the importance of adequate inventory control practices and appropriate management software, but the integration of accounting software with that of inventory management offers many advantages for better holistic business management. Combining forces in this way offers visibility and optimisation of inventory and the supply chain, more accurate financial reports, prevents the mismanagement of stock, and offers another level of automation, allowing human resources to be distributed elsewhere.
Visibility to the supply chain
Providing visibility to the supply chain enables better inventory management by offering stock data to suppliers. This means that suppliers are able to track fluctuating inventory levels, and place and fulfil orders accordingly. This is not only important in providing optimal customer service and timeliness but also means less stress on your business or suppliers by giving adequate time for order completion. If your supply chain partners can see your fluctuating inventory levels, they can ensure the product is available when it is required, cutting down the risk of stock outages.
Increase financial report accuracy
One of the main benefits of integrating inventory management software with accounting capabilities is the increased accuracy of financial reports. By providing visibility between inventory management and accounting, the possibility of communication errors and discrepancies can be avoided. The inclusion of inventory value in accounting practices provides a much more accurate financial account of your business, ensuring effective financial reporting and clear insight into available funds and profit.
Maintain optimal stock levels
Optimising inventory control can maintain stock levels and prevent stock outages and wasted stock. Because of the costs associated with inventory, incorporating accounting software with inventory management software provides a solution to the challenges of wasted money through the mishandling of stock. Integrated systems can provide more accurate analyses and insights into the running of your business, and offer solutions for inventory control based on sales forecasts depending on recent demand and sales. Stagnant or excess stock is a sign of lost money, and therefore incorporating accounting capabilities with inventory management software enables the optimisation of inventory, resulting in the overall increase of success of your business.
By integrating two important features of running a business, human resources can be redistributed to areas of need. With less time needed for administrative tasks, employees can focus more on their customers and growing their business.
Similarly, the enhanced automation put in place by integrated systems offer more accurate financial data and demand forecasts. Because of the real-time data available for accounting purposes, forecasts and insight become more effective and reliable. The real-time data also increases the automation of logistics and accounting, requiring fewer resources to be spent doing the same job.
What makes integration successful?
The key to successfully integrated inventory management and accounting systems is the flexibility of the software. Unlike disparate inventory and accounting systems, which do not integrate or fulfil the requirements demanded of them, integrated systems work in real-time and offer transparency across departments. Transparency offers accurate and up-to-date data to supply chain partners, ensuring stable stock levels and improving customer satisfaction. Flexibility allows businesses to expand and still function comfortably with the same software, growing as the company grows.
While unintegrated systems may keep up with smaller businesses, company growth will see the overloading of the separate databases, and therefore is not sustainable. Investing in integrated systems offers the opportunity to grow with the company, ensuring that scalability is a key design theme and the product will continue to be useful even as your business changes.
The integration of inventory management and accounting management systems is a growing necessity in expanding businesses. Integrated systems offer increased visibility between business and the supply chain, more accurate financial reporting, optimised stock levels, and the automation of data management and forecasting. The key to successful integrated systems is the flexibility and visibility they provide, offering transparent data across business departments, and allowing room for business growth that is sustainable.
Topics: accounting, integrated software, integration, inventory control, inventory management