Integrating for Efficiency: Why You Should Integrate Your Accounting Platform

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Finding a balance between adequate accounting data and accurately managing inventory is a constant issue in many growing businesses. With the increased pressure for quick turnarounds and product delivery, inventory management is becoming increasingly important in building a company. However, many smaller businesses still use legacy inventory management software that doesn’t play nicely with their accounting package of choice.

For those looking to streamline their business management practices, integrated inventory software is essential for avoiding communication issues between logistics and accounting, creating faster delivery times, and avoiding stock wastage.

Why incorporate accounting capabilities in inventory management software?

Smaller businesses tend to install inventory software that is suited to the lower end of their needs. But there comes a point where it becomes difficult to continue growing as a business without streamlining inventory and accounting processes. Moving to a cloud-based inventory platform can help achieve that. For businesses that track inventory by barcode, serial, pallet numbers or lots, using a combined management system is essential. Other business factors that benefit from integrated inventory software include split storage facilities for inventory, where tracking of stock is crucial, varying criteria on ordering decisions such as customisable product, and issues between cash flow and timing of orders. Using an integrated inventory management system can benefit businesses that have difficulties logistically in terms of ordering, storing, and processing inventory.

An Agile View of the Business

Ultimately, the purpose of any business software is to optimise the performance of a company. In terms of optimising inventory and finances, integrated inventory management software allows for transparency between logistics and accounting departments, meaning production can be much more streamlined and efficient. As inventory and demand levels constantly change, tracking your inventory accurately can provide insight into sales forecasts, cash flow, and recent trends. By optimising work surrounding the tracking of inventory, companies can choose the safest options for ordering stock, and real-time data surrounding accountancy and inventory management can offer a better view of exactly what is happening in the business.

Transparency with Supply Chain Partners

Supporting open communications with supply chain partners is important for gathering data about purchasing history and stagnant products. By increasing visibility between the two, suppliers can ensure that they have product ready for purchase, helping to streamline the business and ultimately providing faster response times to customers. Clarity between supply chain partners and purchasers offer a lower probability of error, with the possibility to share information with other partners, streamlining the whole process.

Better Financial Reporting

The obvious benefit of integrating accounting abilities into inventory software is the ability to construct accurate financial data and reports. Streamlining this process enables easier compilation of financial reports and increases the accuracy of reports because of real-time data collection. Analysis directly from the source of data storage reduces delays and the risk of inaccuracies from data transfer. Providing accurate financial reports is essential for forecasting future demand and appealing to investors. By opting not to install inventory management software and choosing an integrated, cloud-based option instead, businesses can leverage real time data and ensure reports are up to date and accurate, minimising risk.

Overall, investing in integrated inventory management and accounting is likely to impress customers, partners, and investors with more accurate and transparent data (without requiring you to put in the extra hours). As demand increases and customers expect quick product delivery, managing inventory and finances in one solution offers logistical and financial efficiency through transparent and real-time information, enabling your business to thrive.

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Melanie - Unleashed Software

Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.

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