How To Manage Your Inventory Accounting with Zoho Books!

Zoho Books delivers a powerful suite of inventory tracking features that are essential for streamlining operations, cutting costs, and maximizing profitability.?

Below, we will examine the key inventory management capabilities that make Zoho Books an indispensable tool.

A. Out-of-Stock Warnings and Reorder Notifications

One of the most important features in managing inventory is keeping stock levels just right. Zoho Books has two key features to help with this:

1. Out-of-Stock Warnings: When an item's stock drops below zero, Zoho Books alerts you to prevent overselling or stockouts. This ensures uninterrupted business operations and good customer experience.
2. Reorder Notifications: Zoho Books notifies you when an item reaches its reorder point, enabling timely restocking and reducing the risk of supply chain disruptions.

B. Landed Cost Tracking

Understanding the total cost of procuring products is essential for pricing strategies and maintaining profitability. Zoho Books helps businesses track landed costs, which include:

• Freight and shipping charges
• Customs duties
• Additional expenses incurred to bring products to the warehouse

By accurately calculating landed costs, businesses can set appropriate selling prices that cover procurement expenses and safeguard profit margins.

C. Inventory Adjustments

Stock adjustments are sometimes necessary due to changes in quantity or value.? Zoho Books simplifies this process with two adjustment options:

1. Quantity Adjustments: A quantity adjustment ensures the stock reflects the actual available quantity, For Example, a supplier delivers an extra 5 units of a product as a bonus during a purchase or a stock count, you discover 3 units of a product are damaged and unsellable.?
2. Value Adjustments: Reflect changes in the monetary value of stock items, such as depreciation in a laptop's value over time. For Example, laptops in stock depreciate in value after a year, reducing their resale price. A value adjustment lowers the item's recorded value to match its current market worth.

These features ensure accurate stock valuation and inventory tracking.

D. Price Lists for Strategic Pricing

Zoho Books empowers businesses to implement flexible pricing strategies with its Price List feature. This allows you to:

• Customize Rates: Assign unique prices for products, e.g., Ksh. 1,500 for Customer A, Ksh. 2,200 for Customer B.
• Apply Percentage Changes: Increase or decrease prices by a percentage, e.g., +10% for a price hike.
• Volume-Based Discounts: Offer discounts based on quantity, e.g., 10% off for 50+ items purchased and 20% off for 100+ items purchased.
• Seasonal or Promotional Pricing: Enable special pricing for events, e.g., Black Friday and holiday discounts.

Zoho Books also supports item-level customizations and bulk actions like cloning, editing, or deleting price lists without affecting past transactions.

Tip: Integrating Zoho Books with Zoho Inventory

Integrating Zoho Inventory with Zoho Books makes it easier to manage your inventory by keeping your stock levels up to date in real-time. This integration automates the tracking of orders, so you don’t have to worry about keeping things organized manually. It allows you to handle multiple storage locations, keep track of items in batches, and access clear reports about your inventory. With sales and purchases working together seamlessly, this connection helps improve your overall operations, reduces stock issues, and supports better decision-making for your business.

Parting Shot!

Zoho Books offers a strong set of tools for tracking inventory, which helps businesses manage their stock efficiently. This means they can ensure they have the right product amount on hand, manage their expenses, and set flexible prices. With features that help monitor shipping costs, update stock levels, and organize price lists, Zoho Books makes it easier for businesses to make smart choices and run smoothly.

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