Many small businesses focus on bookkeeping and management accounts when looking for a new accounting system, but do not know about the other free functionalities that they have to offer. Xero has many free features in its standard module and in particular, the inventory module can be very useful.
Xero’s Inventory Module
Xero has a built-in standard inventory module and also can sync with more complicated third-party inventory applications for more bespoke requirements. The standard Xero inventory module is geared up for more simple inventory management. It enables users to know the bestselling and most profitable product lines to help with better decision-making. It also allows users to keep track of stock levels daily and calculates goods using the average cost method. The Xero inventory module can also save time when inputting large amounts of data by using a CSV template when uploading data. Other processes such as creating quotes, invoice purchase orders and bills creation can be run faster with fewer errors when using the Xero inventory module. Other useful features include instant stock level notification when quoting or invoicing, descriptions and prices of goods pre-entered to avoid typos, attaching documents such as photos to inventory items for a visual reminder of stock, and uploading supplier contracts to keep them handy.
Third-Party Inventory Apps, which integrate with Xero
For more complicated businesses, a third-party Inventory app may be more suitable especially if a business continues to grow and adapt. It needs software, which can be more flexible while at the same time not disrupting the suite of software running the business. Benefits of using third-party apps which can integrate with Xero include saving time on reconciling data between two systems, having the ability to see data in real-time, and improved storing and shipping processes. A further point to note is that when choosing an inventory app, the following consideration should be taken:
- Does the business have multiple locations?
- Is it required for the inventory app to track components of products?
- Are advanced features such as serial or batch tracking required?
- Does the business sell online and is it required to integrate with an e-commerce app?
- Is it required to have software that works with a point of sale system?
- Are there any requirements for bill-of-materials or light manufacturing?
The following are a few third-party inventory apps that synchronize with Xero.
TradeGecko is a standout inventory solution in the Xero add-on marketplace. It allows you to control your stock from single or multiple locations, manage purchase orders and sales, and allows you to automate backordering so you will never be left shorthanded. If you are selling to multiple business customers and want to make it easy for them to purchase from you, TradeGecko is the ideal choice. It allows you to provide your business customers with their own dedicated online ordering portal that you can customize for them. You can provide each customer with their custom pricing, depending on the deals you have in place with them making it easy for you to sell to the right people at the right price. If you are an online retailer wanting to either sell via your site using Shopify, TradeGecko is also a great option. Offering you the ability to sync inventory across multiple channels. Tradegecko also boasts an impressive mobile app, so if you have a sales team out on the road that needs to access your product catalog and place sales orders into the system while out of the office, then Tradegecko is worth looking at.TradeGecko is ideal for:
- Single and multi-location warehouses
- Business to business customers
- Online wholesalers and retailers using Shopify
Dear Systems (also known as Dear Inventory) is another name you may have come across in your research about inventory add ons. Alongside TradeGecko, it is one of the leaders when it comes to Xero inventory integrations. Dear Inventory provides business owners with a complete stock management software solution from purchasing, warehouse management, and sales. Its shipping, payment, and e-commerce integrations also help ensure it cuts when it comes to making it to the top of the list. Dear Inventory offers some more advanced inventory management features over its competitors, like serial or batch tracking, and also offers manufacturing capabilities. Dear Inventory’s intuitive and easy-to-use interface will streamline your business process from quoting to invoicing, picking, packing, and shipping. Dear Inventory is ideal for:
- Small to medium-sized businesses
- Distributors, wholesalers, e-commerce business owners
Neto started out offering an e-commerce solution to customers, with an ability to easily manage products in the back end using their powerful control panel. Neto also offered customers solid integration features with leading freight companies to make the shipping process as seamless as possible. In recent months, Neto has released many new features including a point-of-sale solution and an advanced inventory module, which has made them real contenders in the wholesale and retail cloud software solutions market. Neto is a true multi-channel solution covering e-commerce, POS, and direct sales solutions. If you are an online retailer or wholesaler, Neto is the ideal software solution for your business, with an integrated e-commerce and eBay solution. Neto is ideal for:
- Online retailers
- Online distributors or wholesalers
- The wholesale business that also has physical retail outlets
Other Top Inventory Systems
There are many other inventory app options out there that offer more niche features for specific industries and business types and selecting the right inventory management solution for your business is very much dependent on your specific requirements. We at Alpha Pro Partners are happy to help you find the right solution for your business. If you would like to know more about Xero or would like to take up our free implementation offer, submit your contact details here and one of our consultants will be in touch.
This article is an extract from the Xero website and is written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of its contents.