Ready to expand your business into Asia? With over 30 years’ experience, Primasia provides
company registration and a wide range of corporate services in Hong
Kong, China, and Singapore. We are also your partner in Cloud
Accounting, as Xero certified business advisors. Our specialists come to
you to assist your company in getting up and running on the future of
accounting-- the cloud. Xero provides a deeper look at your business and
can help you understand how successful your business is at a glance. We
provide the training your business needs to utilize this amazing
software.
For
example, keeping track of your inventory with Xero can tell you about
sales cycles and optimal stock quantities. But why is it important to
account for inventory? Inventory accounting can help your business both
save money AND increase profits. Below we’ll cover what inventory is, what it isn’t, and several of the benefits of accounting for your inventory properly.
What is inventory?
Inventory
comes in many shapes and sizes depending on the type of company you
have, there are three main types of inventory: Merchandise you sell,
Products your business installs, and Goods you create or manufacture.
What is NOT inventory?
Equipment and supplies needed to run your company are NOT inventory, instead these are usually counted as Assets or Expenses.
Why is it important to account for inventory properly?
First
and foremost, when you understand how much inventory you have, how much
it cost you, how much you’re selling it for, and when it’s selling- you
can gain insights to help you make smarter business decisions. Working
out your profit margins will help you figure out which products are
earning you the most money and which products just aren’t worth the
hassle. Keeping track of your inventory can help you decide which
products to focus on, which enables you to grow your business.
Inventory
Accounting can also help you understand seasonal sales cycles- what
sells better in summer versus winter. You want to have enough stock to
meet the needs of your customer bases, especially on your most popular
items but not so much that your cash flow is tied up in items that your
customers won’t want more of for several months.
Xero
is beautiful accounting software for small businesses, allowing you to
see your cashflow in real-time with online accounting, invoicing,
payroll, billing & banking. As official Xero-certified business
advisers, Primasia professionals can come to you to set up cloud accounting. Contact us today to learn more!
Connect with Primasia Corporate Services Limited
Hong Kong Headquarters: Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong
Website: https://www.primasia.hk/
Twitter: https://twitter.com/PrimasiaHK
Credit: Prosperity Research Digital Agency(PRDA): PRDA's Founder Douglas White developer of proven 5 step, 4 KPIs process of Social Media Marketing.
Posts
No comments:
Post a Comment