Accounting managers are expected to handle many aspects of an organization, especially as it relates to keeping costs down and profits up. It can be difficult to see where you can make a significant impact at times. Inventory management is one area where careful analysis, solid systems and ongoing monitoring can yield measurable results.
Here are just a few inventory management factors that accounting managers can influence to keep the company’s bottom line healthy.
Inventory Control Systems
The best systems are simple to update and allow users to automate as much as possible. Choose systems that can be customized to your industry and are scalable to keep up with your organization’s growth. This makes inventory expenses simpler to manage and ensures transparency throughout the organization.
Accurate Forecasting
Some forecasting can be automated, but accuracy is dependent on the quality of the input. Examine your business careful to understand all of the factors that can influence the accuracy of forecasts. Take into consideration seasonal demand, economic conditions and how quickly inventory can be sourced. Accurate lead times and reliable vendors are also essential to optimizing forecasting efforts.
Asset Tracking
Inventory that is accurately documented is simpler to manage. Asset tag items where appropriate. Train front line employees to ensure that counts are accurate and inventory is shelved properly. Misidentified inventory can cost time and money and makes accurate forecasting impossible.
Aging Inventory
Inventory that sits on shelves gathering dust becomes a liability rather than an asset. Just-in-time inventory management was born out of this reality. Track which items are fast and slow moving and how long it takes to source them. Liquidate inventory which does not move within set parameters.
By bringing an accounting eye to inventory management, you can ensure that your company remains profitable and ready for growth opportunity.
Are looking for an accounting management opportunity or need to recruit professionals with the skills and experience to improve your inventory management process and your company’s bottom line? Contact the expert accounting and finance recruiters at Contemporary Staffing Solutions today.