Intuit is quite considerate, allowing businesses to experience better financial management through simplified tools. Small and medium enterprises can incorporate unique features that help address all their accounting and bookkeeping services.
QuickBooks, an amazing accounting and bookkeeping system, has incredibly transformed multiple businesses globally. Entrepreneurs can invest in different QuickBooks versions like QB Desktop to leap to the best financial tools.
QuickBooks Desktop Inventory Management
QuickBooks Desktop is readily available to all startups and established businesses. The software has vast features and functionality that enable users to monitor and manage all accounting services on a single platform.
QuickBooks Desktop Inventory management is a fascinating feature designed to help track items that are in stock. Inventory tracking is an essential part of your business; however, it can seem intimidating at first. This can be because when you have inaccurate inventory records, it can result in customer dissatisfaction and lost sales.
Inventory management feature in QuickBooks desktop that helps you to;
- Monitor the supply into your business
- Plan the kind of purchases to make and when to make them
- Have a strong understanding of how all the products move through the chain of supply.
This aids you in maintaining a balanced inventory and keeping track of your inventory costs. Knowing how to properly manage your inventory in QuickBooks desktop can help you in preventing lost sales and customer dissatisfaction.
What is Inventory Management in QuickBooks Desktop?
QuickBooks desktop inventory management is a systematic way to maintain an accurate record of inventory levels. It ensures a timely restocking, which helps avoid stockouts and overstocking. QB Desktop Inventory management system allows companies to track sales and purchases easily.
Businesses can quickly make strategic decisions for manufacturing, marketing, and product prices. Incredibly, the QuickBooks Desktop Inventory management includes:
- Maintaining the storage
- Quality of your inventory,
- Fulfilling orders,
- Stock purchases.
Different types of Inventories
Businesses and individuals using QuickBooks Desktop should check out different inventories to help organize goods into their categories. The inventory allows the user to describe each item and its part in the revenue stream;
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Raw materials –
The raw material inventory stands for goods that one buys to help create other products.
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Work-in-progress (WIP) –
WIP represents raw materials that are in the process of becoming a complete product.
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Finished goods
These are completed goods/items/products that are ready to be used.
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Packing materials
The materials that you use in packing the products that you sell.
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Maintenance, repair, and operating supplies (MRO) –
These are tools that are required for building or selling your product.
How do you effortlessly set up inventory on a QuickBooks desktop?
Managing your business finances can be a hassle and is sometimes overwhelming. During such times, QuickBooks desktop allows you to manage your inventory hassle-free. You can set up inventory using the following steps;
- Start your QuickBooks desktop.
- Then select ‘Edit’ from your menu option.
- Click on ‘Preferences’ and navigate to the list that is located on the left pane.
- Next, click on ‘Items and Inventory’ and then tap on the ‘Company preference’ tab.
- Check on the box next to the ‘Inventory and Purchase’ option to activate it.
- Next, click on ‘OK’. A warning message will display suggesting the software closes all its open windows so that it can adjust the preference.
- Click ‘OK’ on the displayed warning message.
Once you set up the inventory feature on the QuickBooks desktop, the next step is adding the inventory.
Adding your inventory to QuickBooks Desktop
After turning on the inventory feature in your QuickBooks desktop, the next obvious step is to add the inventory items to your QuickBooks desktop. You can do that using the following steps;
- Click on the services icon on the QuickBooks home page.
- Then tap on the ‘items’ option
- Select ‘item’ from the item drop-down menu and click ‘New.’
- Next, click on ‘type’ and then on the ‘inventory’ section. Several options that require you to fill them out will be displayed. These options are;
- You will fill in the item/number field for the item identifier. This aids you in searching, tracking and identifying the items when needed.
- In the purchase field, fill in the purchase information.
- Enter the sale details in the sales field.
- After filling in the sales and purchase details, QuickBooks automatically detects the Cost of Goods Sold account.
- Fill in the inventory income account in the income account section. This enables you to track income from this inventory.
- Once finished filling the required information, click on ‘OK.’
How to track and manage inventory in QuickBooks desktop
Tracking and managing your inventory is made accessible on QuickBooks desktop. It ensures accuracy in record-keeping. QuickBooks desktop inventory management tool allows you to customize your inventory reorder points, tracking, and valuation methods. To effectively track and manage your inventory in QuickBooks desktop, you can follow the steps below;
Customize your inventory preferences –
- Businesses and individuals using the QB Desktop inventory system can navigate to the ‘Edit’ option.
- Next, proceed to click on the “Preference” tab.
- The ‘Items & Inventory details will be displayed on the page.
- Set up the inventory items –
- To access the list of items, one should go to the list tab and click the “New” tab.
- Next, provide the type of inventory item.
- Record your inventory purchases – The purchase orders help to monitor inventory purchases.
- The user should select the ‘Vendors ‘tab and create purchase orders.
- Next, key in the inventory and the quantities details.
Receive items in inventory –
- Access the ‘Vendors’ option to access the ‘Receive items” button. The option shows the items are received.
- Select the correct purchase order and key in the quantities you have received.
- Write down inventory sales – The user can use the sales forms, such as the sales receipts, to record the sales.
- Run the inventory reports – Using the QuickBooks desktop inventory reports, you can gain more insight into the cost of goods sold, the levels of stock, and the general business inventory performance.
Conclusion
With the multiple benefits of the inventory management system. Businesses can easily manage and monitor their finances. QuickBooks Desktop allows all enterprises to create profits through the inbuilt inventory feature.
