Looking for ways to track your inventory? Think is too expensive? Let us, ALT Accounting, an accounting services Singapore firm share with you the one cost saving method to monitor your inventory for your small business.
Inventory in Xero accounting allows you to monitor the quantity of balance goods on hand as you do your business trading, buy and sell, and keeps the account up to date as you carry out your business. Instead of waiting until month end to check on your inventory balance, you always have the real time view of your inventory and financial.
To get started, you need to key in your inventory items. Create them one by one or if you have a list, import them from the spreadsheet. For visual reference, you can upload the product photo or contract into the cloud accounting. If you want to import a list of items simple click on the “import” button at the right corner. From there, you can download the csv template and populate the template with your list of items as per the spreadsheet layout. Point to note, do not try to change the template column header. When all is done, simply upload back into Xero. When you have all you items setup that you are tracking quantity for, you need to enter your opening balances. The opening balances are the quality balance held of each item as at the date you begin to track the inventory in Xero. You only need to do it once. Just follow the instructions on the page.
Now as you order inventory from your supplier and you record the bill they sent you for the goods received. Xero will update the quantity automatically. The best part of cost control, Xero keep track of the average cost price of the inventory bases on the purchased you made for this product. By clicking on the product item, you can see the full transactional history where you can drill down into exact details.
You can also see how much inventory you have on hand and compare to how much on order and the total quantity from your sales book. This is especially useful in planning your next purchase and maintaining an idea inventory level held for your business.
When you create a sales, you can see how much is available on hand for the inventory item right from the invoice. And of course, as you made a sales, the quantity of inventory will reduce. Xero will adjust your account to reflect the income made and the cost of goods sold. The inventory item details report shows value movement, quantity on hand movement, margin as well as profit per item and much more. This range of easy to use customised options to display the information you need. You can start selling and Xero will track your inventory for you. Now, accounting services for small business Singapore is more affordable than before.