Small businesses often find it difficult to track income, inventory, and security preventions. However, without properly tracking this information, it is impossible to understand your exact financials and to know how well, or how poorly, your business is doing. These financial and inventory tracking tips will help you get your organization back in order.
Upgrade to a point of sale system
A point of sale system acts as an electronic cash register. Instead of counting the cash in the drawer at the end of the business day, your point of sale will track it all day long. Additionally, using a point of sale system can reduce employee theft, because you know exactly how much should be in the system, every minute of the day. If you are finding it difficult to justify the upgraded costs of a point of sale system, just think about the efficiency and theft reduction and how it will translate to cost savings and business growth.
Take advantage of audit automation tools
Audit automation tools, like audit management software programs, keep track of your income, inventory, and spending. You no longer have to wait until the end of the year to understand how much money you spend on inventory. You also don?t have to wait to see how much actual income you made, minus the current inventory you are sitting on, and the bills that you still have to pay for the business. Audit automation tools can be helpful in understanding day to day transactions and in obtaining additional funding. When applying for a business loan, the bank will require detailed records. With tracking software, you can easily obtain this information.
Identify high cost areas and make necessary changes
Another advantage of audit automation tool is that you get real time information on how much you are spending on things like inventory, shipping, and labor. Even though shipping and manufacturing are getting more efficient and faster, companies are still holding onto more stuff. Days inventory outstanding is the amount of inventory on hand based on average sales per day, and it has risen 8.3% over the past five years. Fortunately, when you use the different types of tracking software, you can take better control of your inventory tracking.
Reduce warehousing errors
Another problem with not using asset tracking software is that you never really know what your current assets are. This can also be important when attempting to obtain a loan. Additionally, errors can cost a business money. Statistics show that typical warehouse management systems can decrease errors by as much as 70%. More advanced of warehouse management systems, such as audit management software programs, can reduce error an even greater amount. Reducing error often translates to saving money.
Cut costs on storage prices
Larger businesses need ample amounts of storage. If you are not moving your products quick enough, your storage costs could be cutting into your profits. Using an audit management system and inventory tracking systems can reduce the amount of inventory that you are sitting on, while also reducing your storage costs. The number of warehouses in the U.S. has risen 6.8% over the last five years, with much of this increase due to business usage.
If you rely on inventory and sales as a primary source of your business, it is crucial to also use audit automation tools. Otherwise, you are sitting on large amounts of inventory that are costing you money. You are also not able to accurately track your expenses and income. To get a full picture of your business success and improvements that you can make, you will need to use audit management software.