Small business retail owners have a lot of organizational and inventory related tasks to complete. In fact, many of these tasks can take up much of the workday, not leaving enough time to focus on other more important parts of the business. Fortunately, there are many different types of software programs that can improve this day to day process and shorten required tasks such as inventory tracking, audit processes, and manufacturing inspections.
Inventory tracking software
A shocking amount of capital is tied up in inventory. Inventory, along with accounts receivable and accounts payable has tied up $1.1 trillion in cash, equivalent to 7% of the U.S. GDP. This unaccounted for money can make it difficult to accurately estimate a company?s worth or current cash flow. Inventory tracking software can solve this problem for many businesses that deal with retail. The inventory tracking software program tracks the item from when it is first inputted to when it is finally sold. Even when items are sitting on the shelf, unsold, and usually unaccounted for, they can be included in business evaluations.
Perhaps the best part of this inventory tracking software is that it can even include shipping and manufacturing in the overall business evaluation. Even though shipping and manufacturing are getting more efficient and faster, companies are still holding on to more stuff. Day?s 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. The ability to track for this type of outstanding inventory can significantly increase the rate of accuracy when tracking product.
A business audit occurs when the books and records are evaluated. An audit process might occur when a business is sold, a business is merged, or when a small business is attempting to secure a new client or company. The potential company may request access to the businesses books to back up their claims and information. However, this audit process can be extremely lengthy and detailed. It takes up a lot of company resources and time, for both parties of interest.
Another situation that a company audit may be needed is when there are frequent errors occurring. The different types of audit software speed up the audit process and reduce any warehouse and bookkeeping errors. Statistics show that a typical warehouse management system can decrease errors by as much as 70%. Utilizing a more advanced audit system can reduce errors by an even larger percentage.
Manufacturing is an important and necessary part of any shipping or retail business. However, errors with the manufacturing process can be expensive and can reduce customer satisfaction, which also can be costly. While you can automate the audit process with audit automation tools, these tools do not always tell you the specific problems with the manufacturer. You might be able to identify that the problem is with the manufacturer, but not be able to tell which specific task in the manufacturing industry is causing the problem. However, using a combination of the inventory tracking software and the audit process system can expand the knowledge and tracking ability. Retail business owners can pinpoint exactly where the problems lie.
Many small business retail owners find that much of their workday is composed of auditing manufacturers, tracking inventory, and bookkeeping. This does not leave sufficient time for marketing, product improvement, or customer service. Business programs like inventory tracking software and audit processing systems can improve the ability to monitor these important areas of business and allow the small business owner to focus on more important roles.
Latest posts by Sarah Todd (see all)
- Four Benefits of Compensation Management Systems - February 21, 2018
- Over $11 Billion Is Lost To Employee Turnover Every Year How Your Business Can Encourage Retention - February 19, 2018
- What To Buy Your Husband For Your Fifteenth Anniversary - February 17, 2018