Inventory items are those items you purchase for your business.
For example, if you have a laptop store, you can track the number of a certain brand laptop model. You need to turn on the inventory tracking in QuickBooks before you can create inventory parts.
Benefits of inventory management
The inventory management tool is essential for a successful business. With a strategic plan in place that optimizes supervising and managing inventory, including real-time data of inventory conditions and levels, companies can achieve inventory management benefits.
- Accurate order fulfillment– If the inventory has not managed properly, then you won’t be able to know if any product is out of stock or not. Taking the time to develop a more robust plan can help brands to avoid inaccurately filled orders, high return volumes and a loss of customer base.
- Better inventory planning– It’s difficult in the measure of which products you needed if there is no clear way to tell what products are already in stock. If you do not properly manage the inventory they already have, they can easily overstock items, and some of these items may not be strong sellers. Detailed inventory management decreases these issues and allows warehouse managers to refresh inventory only when it’s needed. Its both space and cost-effective.
- Customer satisfaction– customers always eagerly waiting for their orders, and if the orders arrive late, damaged or not as described then it will lead to a bad impact and clients are less likely to shop from the brand again. Good inventory leads to orders being fulfilled more quickly and shipped out to customers faster. The enhanced processes can help the business build a strong supply with customers and keep them coming back for more.
- Improved accuracy of inventory orders– the product orders, status and tracking of inventory must be accurate because it is very crucial for the business.
- Organized warehouse– a good inventory management strategy leads to an organized fulfillment center. Organized warehouses result in more efficient plans. This also includes cost-savings and improved product satisfaction for businesses using the warehouse for managing inventory.
- Increased efficiency and productivity– users must manage inventory properly on time so that less time and resources will invest in managing inventory and can allocate to other areas.
- Save time and money– accurate, efficient, and good inventory results in saving time and money.
- Repeat customers– Efficient inventory management and control protects from incorrect or damaged goods being shipped to customers. This improves customer experience, protects from issues such as refunds, and achieves more repeat buyers.
Steps to Setup Inventory In QuickBooks Online
How to create an inventory product
- First, enable inventory tracking.
- Open the gear icon and choose the account and settings.
- Your inventory settings must be under products and services.
- To enter your first inventory item, turn on track inventory quantity on hand.
- Then click on save and done.
How to set up a new inventory item
- Click on new and then
- Select the inventory type item.
- Enter the information for the new item.
- Review the list of products and services reports.
- Go to the left menu bar and select reports.
- Select all the reports.
- Under the products and services list, select the run button.
How to add inventory
Activating the inventory feature
- Go to the menu, select Edit, and preferences.
- Go to the left pane of the dialogue box and highlight inventory and items.
- Then select the company preferences tab.
- Mark the inventory and purchase orders are an active checkbox.
- A message will prompt saying QuickBooks needs to close its open windows. Click OK.
- Select OK.
Adding an inventory item
- Go to the home page and select the items and services icon.
- From the item list dialog box, click on the item and select new.
- In the new item dialog box, from the Type drop-down list, select the inventory part.
- Go to the item name or number field and type an identifier for the item.
- Go to the income account field, select or add the income account, used to track income for the item.
- Complete other fields as required.
- When completed, click OK.
That concludes my post on how to set up inventory in Quickbooks online. With the help of this post, you’ll be able to get started with setting inventory items in Quickbooks. I still recommended you to discuss your accountant or a certified Quickbooks ProAdvisor for setting up your inventory.
In that way, you can set up your inventory correctly and proceed as per your requirement.