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QuickBooks Inventory – Managing & Tracking your inventory

July 26, 2009 Leave a comment

 

April 15, 2009

Managing and tracking your inventory

Please enjoy the web cast! 

View The Web Cast | http://nerdenterprises.acrobat.com/p69591167/

When we sell products it is important to understand the dynamics surrounding inventory and particularly how we use QuickBooks for inventory management purposes. QuickBooks average costs inventory and sometimes that is not the most accurate way to value the inventory we have on hand. This web cast goes over a template I designed in MS Excel that lets you take an inventory report from QuickBooks and export it to my template. 

There are just a few steps involved in managing and updating your inventory using this template:

  1. Run the item listing report in QuickBooks.
  2. Customize the report to get only the columns you need and re-order them to match the template.
  3. Export the report to Excel and copy and paste the exported report into the template.
  4. Update your Inventory.
  5. Use your ALT + TAB and Copy & Paste to post your Inventory adjustment in QuickBooks.
  6. Analyze your inventory statistics in the template.

Inventory is one of the more complex areas when it comes to running a business and it is also the part of your business that carries the greatest potential weakness in terms of internal controls. That is to say that people can walk out of your warehouse with inventory, inventory can sit on the shelves and become obsolete, and it can be forgotten as new products are developed and brought out. The point is that it becomes very important to put a great deal of emphasis on this area.

Keeping on top of your inventory will help you maximize your profits by minimizing waste and theft. By tracking this on a regular basis you will be clued in to the situations where something is wrong. For example if you have one particular product that is really popular and you keep taking inventory resulting in an adjustment to that product, this might indicate that someone is walking out with the inventory. Just knowing that you are tracking this closely will be a deterrent to employees to take things so make sure you involve them in the inventory taking process.

We also suggest using a special “Cost of Goods Sold Account called “Inventory Adjustments” (very original I know). This is so that you can run your profit & loss regularly and see what is happening with this account. Does it keep increasing? Again an indication there may be a problem worth looking into.

Analyzing the products in this template that we use will help you gain insight into which products are the most profitable in terms of Gross profit, and also which ones are actually generating the most profit based on volume. Check back for a follow up web cast in which we will show you how to run a report that lets you perform this analysis on sales volume which you will find invaluable. Coming on Wednesday July 29, 2009.

Please enjoy the web cast

View The Web Cast | http://nerdenterprises.acrobat.com/p69591167/