MYOB Training

If you're a little unsure on what an inventory actually is, this is the place to start. Many small business owners skim over the concept of an inventory, failing to realise the ways in which it applies to their business, so first let's get a firm definition in place. An inventory is a list of all the goods or resources a business has in stock, used to keep track of the sales, demand and capacity of your business. It can also refer to the act of calculating these numbers, referred to as 'taking inventory'. When you learn MYOB  you'll find an entire section dedicated to managing this inventory, and, used correctly, an inventory becomes a living document which can be used to gain valuable data about your trading, as well as making planning that much more efficient. 

Keeping up with demand

Identifying which products are popular or in demand is a vital component in good inventory management. Once you see which items are jumping off the shelves you need to react to this increased demand, and fast. Not having enough stock to meet your customer's needs will quickly squander moneymaking opportunities, so regular analysis of sales is a must.

Identifying dead weight

Just as you need to be aware of what is in demand, you also need to be realistic about what is not. Adjusting your order figures to reflect those items that aren't selling too well can save you time and money--there is no point replenishing the stocks of something that sits on the shelves without any customer interest, so you need to deal with the problem. There are several ways you can do this--reduce orders for that product and cut your losses, hold a discount sale to move the items in stock, or even run a promotion putting the spotlight and some much-needed publicity on the unwanted product.

Protecting your business

Unpleasant as it is to think about, employees aren't always as trustworthy as they may appear. In a small business this is especially upsetting, because staff are usually hand-picked by the owners and therefore develop a personal relationship. Nevertheless, taking regular inventory means you have the opportunity to keep an eye on your stock means ruling out any suspicions. Of course, the staff aren't the only people that could have the opportunity to undermine you, retail and food businesses especially are forced to contend with shoplifting, breakages and wasted produce, all of which should be reflected in the inventory.

There are ways in which you can outsource your inventory management, but with the ever-increasing sophistication of business and accounting computer programs, managing your business's inventory yourself has never been easier. My advice is to enrol in an MYOB course , schedule in your 'inventory days' and add yet another skill to that rapidly-expanding resume!