A new page has been turned in Xero’s accounting software manual. With its other main competitors already having a system to track inventory, it was only a matter of time before Xero included a system of their own. There are pitfalls to be sure, but Xero’s inventory software is sure to make its users very happy.
Xero inventory, in essence, uses an easy to maintain inventory tracking mechanism. It tracks the quantity of goods on hand and keeps accounts up to date as you go. As you know, inventory tracking is essential to maintaining a grasp on your business needs. With Xero, it really is a point-and-shoot system.
In this software, you have the luxury of being able to see your inventory and financial information in real time, instead of waiting until month’s end. Xero’s dashboard display makes navigating these aspects of your business simple. Seeing how your business is tracking makes it much easier to keep your clients happy. Xero has the ability to batch import existing inventory lists from a spreadsheet as well as create individual items one at a time. The program also allows the user to attach an order contract from a client and even a picture of the item to the newly added inventory file.
Tracking your business’ quantities is very easy, as you only need to enter your opening balances into Xero once. The moment these balances are in Xero’s system, it begins updating when your suppliers ship you your product, when that product goes out, the average cost of your product, and how much of your product remains on hand, on order, and in committed quotes.
The inventory items details report created in Xero features a drop menu through which you can customize what is tracked and what isn’t. The basics include value movement, quantity on hand movement, margin and profit per item. This allows you to focus on selling your product while Xero tracks the rest.
There are a few small issues with the inventory features that Xero provides. The first is its adherence to using average cost. Currently, there are no other costing methods available as options within the system, so users are stuck with average. Another disadvantage is the learning curve to setting up your inventory. While it’s easy to use for those who have used inventory software in the past, new users may have small issues creating the correct accounts.
There is no auto-create function in Xero, however there is a CSV form provided by the program through which you can set up your inventory list for upload. There is no revert button once a large list has been entered, however, so using the how-to videos, courses for small business owners and the forum will be essential for new users. The bottom line for Xero is making sure you follow the instructions if you are a smaller business just getting into inventory. If you have experience with inventory, using Xero for bookkeeping should be smooth sailing.
A bonus for Xero is its fairly sizable list of companies that provide add-ons to bolster the software. The benefit of these add-ons is their specificity to certain areas of business that require a different level of attention with regards to inventory. No matter what your business is, one of the 18 add-ons will surely help it run smoother than ever.
One such add-on is Vinsight. Vinsight is an add-on for those businesses that specialize in regulated industries, such as food, wine, and alcohol. Vinsight allows you to create your orders through them and post them directly to Xero without the fear of data-entry duplication. It also works out the industry regulated taxes to ease your accountant’s stress levels.
TidyStock helps you seamlessly share stock related transactions in real time. Customer and supplier information are shared by TidyStock with Xero, and all purchase orders and sale amounts are collected within Xero’s accounts systems.
Cin7 is one of the most popular add-ons for Xero, with nearly 90 users having given it a 4.5 star rating out of 5. Cin7 allows its customers to create batch payments which can be collected in Xero; export orders directly; and can flag Cin7 products with a tracking number, which is also uploaded directly to Xero.
SimPRO helps those businesses who specialize in the trades keep their trade technicians within easy reach through vast connectivity with handheld devices. These businesses include HVAC, plumbing, electrical, and heating services.
There are many other add-ons that have partnered with Xero, all of which are available to help your business in whatever way you need. If you want more info, visit their website at https://www.xero.com.au.