Understand inventory management software and its benefits

Taking care of inventory is a vital business function, and business inventory management software has become one of the most important parts of any organization’s IT infrastructure.

As the name suggests, inventory management departments use POS system with inventory management software to manage financial transactions like trade receivables, payables, and other functions.

Day-to-day accountants also use these software to generate the data required for internal and external audits, reporting and financial analysis, both to meet legal and regulatory requirements as well as internal.

The different accounting solutions dedicated to different companies

As part of a business strategy, accounting software brings a level of automation that promotes efficiency and productivity.

Without these apps, accounting staff would have to perform tasks manually. By automating these tasks, the software can reduce accounting costs and provide much more accurate and faster reports.

In inventory management software, there is no one-size-fits-all solution. On the contrary, these applications are available in several variants. The best choice for any given organization will depend on its size and many other factors.

For example, large companies that need a lot of functionality, scalability, and integration with other business processes will want to deploy accounting modules directly into their ERP. Within the ERP, companies can then establish links between accounting data, CRM, and human resources management, inventories and even Business Intelligence.

For small and medium-sized businesses with more limited budgets, there are less expensive options, such as turnkey solutions for SMEs – most often available as ready-to-download software packages. These products support many of the basic accounting functions that small businesses need to run their business.

In between is stand-alone POS system with inventory management software, which some vendors refer to as “financial management suites,” “enterprise-class” accounting software, or business accounting software for large SMBs.

The companies that make up this category have exceeded the accounting needs of “small” SMEs, often due to strong growth, the internationalization of its customers, the multiplicity of production locations and stocks.

As with other types of business solutions, inventory management software is available on-premises and in the cloud.

Why use inventory management software?

The demand for inventory software packages is increasing worldwide. A 2017 Technavio Research report predicts that the market will experience 6% annual growth between 2017 and 2021, reaching $ 4.1 billion by 2021.

One of the main drivers of the market is the growing demand for modernization of financial operations. There is a growing need for businesses to collect and analyze increasing volumes of data that comes from increasingly diverse sources such as online loan applications, banking transactions, online and in-store sales, media social or even stock and / or commodity negotiations.

The three major trends impacting the accounting solutions market are the emergence of mobile applications, optical character recognition (OCR) and Big Data.

Accessing inventory management software from mobile devices provides greater flexibility by allowing staff to manage accounting tasks no matter the time or location. As the Technavio report shows, mobile accounting apps simplify processes such as sending invoices, posting payments, recording expenses, tracking receipts, and planning budgets.

The simplest mobile accounting apps offer basic functions, such as invoicing and expense tracking. The most advanced add functions such as bill reminders (unpaid or payable), mobile wallets and bank transfers.

Using OCR, software can convert images into readable and editable text, and many companies today are implementing the technology into their accounting processes, Technavio notes. This technology eliminates the need for handwritten forms, whether for cashing checks or recording receipts. With OCR, uploading a document – handwritten or printed, as a PDF or a photo – onto an online accounting platform, automatically extracts the text and relevant data.

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