With a lot of SME’s being service based businesses, stock is not a consideration normally but we do still have a lot of businesses that need to process stock transactions and the Cloud offers some great solutions.
As with other Apps, a large number will integrate fully with Quickbooks Online which will mean your figures are always up to date and you are not wasting time rekeying data between systems. The Apps will give you even more solutions on top of the great offering already from QBO.
Functions You Will Need
Within Hemingway Bailey we have the experience of large manufacturing businesses where it was always important to have great stock systems so you could both fulfil customer requirements but also have accurate, upto date stock information for management information. For your stock system you should be looking at systems that will offer you the following.
● Multiple warehouses and locations to track your stock better
● Barcoding options to improve transaction accuracy
● Stock traceability so you can handle any issues with recalled stock
● Purchase orders so you can both have tight controls internally and procurement accuracy from your suppliers
● Goods Received Notes capability. Often a supplier invoice does not come in straightaway and you need to have the facility to record the stock coming in so you can properly account for it in your accounts. If not, you are in danger of possibly overstating your result.
● Different valuation methods. You need to have the option of valuing your stock with different methods such as FIFO and Last Cost
● Bills of Materials / Recipes. Often a business will have a number of components making up a finished part and so a Bill of Material is important in your stock system to manage this.
● Works Orders. If you are manufacturing, having the ability to create works orders to track work in your factory will make you more efficient and will improve your planning.
● Jobs / Projects. Your business may be delivering different projects and so you need to look at a stock system that allowed you to book material, labour and other costs to a project. This will mean that you will both be able to track how your project is progressing to completion but also will give you the information to see if you have being profitable or not with your work.
● Different stock classes. The more you can group your stock into different stock categories, the better. So for example you may have a lot of different stock items but they could be split between, Raw Materials , Packaging & Finished Goods in a very simple system.
● Batch sizes. Can your stock system cope with different volumes to be made of the same product ?
● Minimum Reorder Quantity and Minimum Stock level. Your system should tell you when you are about to get to a critical level of your stock and to tell you when you need to reorder it. Some systems will prepare you the purchase order ready to send out. Minimum reorder quantities are the minimum quantity you need to order to satisfy the suppliers requirement.
● Stocktaking Function. To give you full functionality, a stock system should be able to give you the tools to run physical stocktakes.
There are a number available and as with all Cloud software, we recommend you get in touch with us to discuss your requirements and we will be able to advise suitable solutions for you. With our unique practical knowledge of how businesses work and the accounting requirements that need to be satisfied, we can provide you with a high quality implementation solution.