By Linda Bryan
Chief Executive Officer
As tax season consumes virtually every accountant’s waking moment this time of year, the primary focus for the time being is on how to lower tax liabilities before the April 15 deadline. But when profits are the goal, tax accounting is just the tip of the iceberg.
In fact, inventory accounting is just as important in protecting profits and lowering tax liabilities for manufacturing companies, especially if you have the right inventory accounting software in place.
Here are a few reasons why inventory accounting software makes a bottom-line difference—tax-related or otherwise.
- Inventory Accuracy. Real-time information on the allocation of materials provides you with an accurate measure of the value of raw materials, work in progress or finished goods inventory. You can use such detailed information to precisely manage just-in-time inventory—which, of course, lowers your overall inventory carrying costs.
- Increased Data Entry Accuracy. Integrating your accounting software with scanners and barcode systems increases the accuracy of data entry, eliminates duplication and, as a result, minimizes waste and unessential costs.
- Accurate Inventory Costing. Automated mechanisms account for all inventory related expenses, including wage allocation and overhead costs for produced, kitted or warehoused goods, as well as accrued cost of goods and landed costs. The cost in labor savings can be substantial.
- Accelerated Growth. No matter how you look at it, manual or non-integrated systems simply hold you back because you’ve got to deal with cumbersome tasks that are both routine and non-income-producing.
- Increased Customer Satisfaction. Rapid turn-around time on custom orders, real-time order status, accurate due-date delivery performance and better cost information for pricing make both you—and your customers—much happier.
- Better Information. When you have the information you need at your fingertips, you can make better bottom-line decisions that impact both you and your customers. Which doesn’t just increase satisfaction—it leads to more sales.
Tamlin Software is an Elite AccountMate Business Partner. It allows us to offer you unique accounting solutions for your growing business to gain a competitive edge through customized ERP solutions, including our advanced inventory accounting software.