Mastering Financial Freedom: A Strategic Guide for Entrepreneurs in Building a Resilient Business Foundation | CPA 70808

Navigating the complex waters of entrepreneurship requires a strategic approach to financial management, whether you’re at the inception of a new venture or steering an established business. At our firm, our unwavering commitment is to guide you toward complete financial freedom, liberating you from the shackles of financial stress that can impede the growth and success of your business.

Set Ambitious Goals

In the grand tapestry of business success, setting ambitious goals serves as the vibrant thread that weaves together your aspirations and achievements. Dreaming big isn’t just an exercise in imagination; it’s a catalyst for progress. By establishing clear goals, you create a roadmap that not only measures success but also informs sound financial decisions in the present. Every seemingly small decision made today has a profound impact on the future trajectory of your business. Consider it an investment in the success that your future self and team will undoubtedly appreciate.

Develop a Comprehensive Plan

In the world of business, uncertainty is the only certainty. To foster genuine growth, a business must be equipped with both short and long-term plans. How will you allocate new earnings? What strategies are in place to weather slow periods or unexpected disruptions? How are you budgeting for necessary acquisitions? Addressing these critical questions lays the foundation for a resilient business strategy, one that acts as a shield safeguarding profitability from the unforeseen expenses that are an inevitable part of the business landscape.

Exercise Prudent Financial Decision-Making

Strategic debt, when wielded judiciously, can be a powerful tool in the arsenal of business growth. However, wielding this tool effectively requires a profound understanding of the returns on your investments. It’s not about avoiding debt but rather using it strategically to propel your business forward. Before making significant financial decisions, analyze the potential benefits and risks meticulously. Acting wisely positions your business for sustainable growth without compromising its financial stability.

Embrace Organizational Efficiency

Disorganization is the nemesis of productivity. To ensure that no critical details slip through the cracks, establish robust systems that guarantee operational efficiency. Beyond averting unforeseen challenges, an organized approach brings opportunities for improvement to the forefront. By maintaining a well-ordered business, you not only mitigate risks but also streamline operations, fostering an environment conducive to innovation and growth.

Should your desire be to make genuine strides toward financial freedom, rest assured that our staff stands as your dedicated partner. Our mission is to streamline the management of your business, providing you with the bandwidth to focus on serving your community, cultivating client relationships, and fostering sustainable growth. Connect with us today and embark on a journey toward a more financially secure and prosperous future.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Optimizing Business Success: Essential Management Tools for Your Accounting Office | Baton Rouge CPA

In the intricate world of accounting, mastering essential management tools is paramount to navigating the dynamic landscape and ensuring your firm’s long-term success. Let’s delve deeper into these tools, each a pillar in the foundation of a thriving accounting office.

Unlocking Potential with Mission Statements

Crafting a mission statement isn’t just a formality; it’s a pivotal step in defining your accounting office’s essence. Beyond stating what services you provide, it answers fundamental questions: “What do we do?” and “Whom do we do it for?” Forbes underscores the mission statement’s significance as a compass, guiding beneficial decisions and future planning. This concise declaration not only provides clarity but also serves as a powerful motivator, rallying your staff toward common goals and instilling a sense of purpose.

Strategic Planning: Charting Your Course

Building upon mission statements, strategic planning is the roadmap that charts your accounting firm’s course. It’s a comprehensive process involving the definition of your business direction and aligning decisions with a future vision. This isn’t a complex exercise; it’s about documenting core values, envisioning where you want to be in five years, and outlining the steps to get there. Communication is key – ensuring that your team understands and is aligned with these goals ensures that daily efforts are synchronized with the overarching mission.

Elevate Customer Relationships with CRM

In the digital era, Customer Relationship Management (CRM) is the linchpin for fostering lasting relationships. CRM leverages data analysis to glean insights into customer needs, compiling information from various sources like your website and social media. To implement CRM effectively, consider investing in systems like Salesforce, Zoho, or HubSpot. These platforms centralize customer information, track transactions, and manage marketing campaigns, allowing you to optimize client interactions and enhance overall customer satisfaction.

Leadership Beyond Ownership

As the owner of an accounting office, your role extends beyond ownership to leadership. Effective leadership involves emotional control, consistency, and the art of delegation. It’s a continual process of development, requiring open communication with your team for valuable feedback. Striving for consistency and seeking opportunities for leadership enhancement ensures a cohesive and motivated team.

Maximizing Business Potential

Integrating these management tools into your accounting office isn’t just a strategy; it’s a commitment to enhancing overall performance. Whether you’re crafting mission statements, engaging in strategic planning, implementing CRM systems, or refining leadership skills, each tool contributes to the sustained success of your business. Our dedicated team offers valuable resources to guide you through exploring these tools further. Contact us today, and let’s unlock the full potential of your accounting business together.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Developing and Improving Accounting Systems: 6 Steps to Success | Baton Rouge Accountant

Accounting systems are an essential component of any successful business. They provide accurate information on financial transactions and enable companies to make informed decisions about their finances. Developing and improving accounting systems is essential for companies to remain competitive and stay on top of their finances. Here are some tips on how to develop and improve accounting systems:

  • Research and Understand Accounting Principles: Before developing or improving an accounting system, it is important to understand the basic accounting principles. This includes understanding the concepts of assets, liabilities, equity, income, expenses, and cash flow. Knowing these concepts will help you create an accurate and effective accounting system.
  • Analyze Your Business: Analyzing your business will help you identify areas where your accounting system can be improved. This includes understanding the types of transactions your business makes, the number of transactions, how often transactions occur, and any other factors that could affect the accuracy and effectiveness of your accounting system. 
  • Set Goals for Your System: Set specific goals for your accounting system. This includes goals for accuracy, efficiency, and timeliness. Setting goals will help you determine what data needs to be collected and how it should be stored. 
  • Choose the Appropriate Software: Make sure the software is secure, easy to use, and compatible with your system. Consider free or low-cost solutions, such as cloud-based accounting software, if your business is small.
  • Review Your System Regularly: Routine review will help with accuracy and efficiency. This includes ensuring data is stored correctly and that transactions are entered accurately. You should also monitor cash flow and financial statements for accuracy.
  • Seek Professional Advice: Consider seeking professional advice when developing or improving your accounting system. Accountants have the expertise to help you create an effective and efficient system. They can also help you identify any potential issues with your system and provide solutions.

Developing and improving an accounting system is essential for any successful business. By understanding the basic accounting principles, analyzing your business, setting goals for your system, choosing the appropriate software, and regularly reviewing the system, you can ensure an effective and accurate accounting system. Additionally, seeking professional advice from an accountant can help you identify any potential issues with your system and provide solutions. For more information, please contact our accounting firm today

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

7 Tips for Protecting Your Finances from Personal Financial Fraud | Baton Rouge CPA

Personal financial fraud is a growing problem in today’s society. It can be difficult to protect yourself from fraud, but there are steps you can take to reduce your chances of becoming a victim. Here are some tips on how to avoid becoming a victim of personal financial fraud.

1. Monitor Your Accounts: One of the best ways to protect yourself from fraud is to regularly monitor your accounts. By checking your bank statements, credit card statements, and other financial accounts, you can quickly spot any suspicious activity. If you notice any unexpected charges or withdrawals, contact your financial institution immediately.

2. Set Up Fraud Alerts: Many financial institutions offer fraud alerts, which can be set up to alert you if there is suspicious activity on your accounts. This can be a great way to stay on top of your finances and protect yourself from fraud.

3. Use Strong Passwords: It is important to use strong passwords for your online accounts, as well as for any other accounts related to your finances. Passwords should be at least eight characters long and include a combination of upper and lowercase letters, numbers, and special characters.

4. Avoid Phishing Scams: Phishing scams are attempts to obtain personal information, such as passwords or credit card numbers, by sending fraudulent emails or text messages. It is important to be wary of any emails or text messages that appear to be from your financial institution. Never click on a link in a suspicious email or text message and never provide your personal information.

5. Beware of Investment Scams: Investment scams are often used to target unsuspecting individuals. It is important to be wary of any investments that seem too good to be true or involve high-risk investments. Before investing your money, research the investment and the company offering it, and only invest what you can afford to lose.

6. Protect Your Personal Information: It is important to protect your personal information, such as your Social Security number and credit card numbers. Never give out your personal information online or over the phone unless you are certain it is secure.

7. Be Wary of Unsolicited Offers: Be wary of any unsolicited offers, especially those that involve money. If someone contacts you with an offer that seems too good to be true, it is likely a scam.

By following these steps, you can reduce your chances of becoming a victim of personal financial fraud. It is important to stay vigilant and protect your personal information. By monitoring your accounts, using strong passwords, and avoiding phishing scams, you can help protect yourself and your finances. Contact our accounting firm today to learn how we can help

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

CPAs Can Help you Save Money | Baton Rouge LA Accounting

More and more entrepreneurs and small business owners are relying on software and the internet for their accounting needs. Despite the fact that DIY solutions may save money in the short term, they can end up costing more in the long run. It is possible to find deductions unique to your industry with the assistance of an accountant who specializes in your field. By doing so, you may be able to avoid making serious financial mistakes in the future.

We are a local CPA firm with many years of experience and training. You can count on us for customized insights into your financial statements, cash flow statements, profit and loss statements, and any compliance issues that relate to your type of business.

Analyze spending patterns.

A business CPA can provide insight into spending patterns and potential opportunities for your business. We can help you understand the nuances of how your inventory is being managed, whether your pricing is competitive, and how your financing can be enhanced. Through these insights, we can also assist you in analyzing the areas of your operation that are ready for growth, what changes would be beneficial to you, and how you can plan for continued success.

A small business accountant provides you with the resources and guidance you need to make more informed decisions regarding the operation’s future. Although the internet and software can assist in organizing your finances, only a trained CPA can provide a tailored approach.

Local Bookkeeping Services

Are you in need of local bookkeeping services? Our firm provides ongoing financial accountability and insight into the financial health of your operation. By engaging a CPA with knowledge about your industry, you will be able to gain a deeper understanding of both the larger trends as well as the health of your business. By freeing up valuable time, you will be able to devote it to taking care of your clients and planning your next move.

Make sure your future is protected by an experienced CPA.

With many years of experience, a firm such as ours operates at peak efficiency. You will be able to avoid costly errors that may be made by a generic software program or by an accountant who lacks experience. Our team ensures that everything is completed on time and in full, so you are protected from audits.

As a small business CPA firm, we are confident that we can provide a number of benefits to your company. If you would like to learn more, you may schedule a complimentary initial consultation at your convenience. Please allow us the opportunity to provide you with insight into your type of business and discuss our wide range of services with you.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Employee Embezzlement: What You Need to Know | CPA Baton Rouge

It is imperative to trust those who work for you; after all, you probably hired them and worked with them on a regular basis. Yet a wealth of statistics indicates that worker theft, including embezzlement, is on the rise. According to the latest Global Study on Occupational Fraud and Abuse, 95 percent of all businesses have experienced some form of employee theft.

What industries are most affected? The Association of Certified Fraud Examiners reports that banking and financial services have the highest number of occupational fraud cases. This is followed by manufacturing, government and public administration, healthcare, and retail.

In order to prevent worker theft, it is essential for business owners to implement safeguards and internal controls. By educating yourself and putting processes in place, you can minimize the possibility of this occurring and detect it early on. Here are some tips to help you get started.

Make sure you know who you are hiring.

You cannot select a new employee solely on the basis of his or her resume, recommendation, or personality. A professional background check should be conducted on any employee who will have access to confidential information. Checking references is also a wise idea.

Check for red flags of embezzlement.

Make sure your antenna is up to detect common theft indicators. Employers should pay attention if a staff member suddenly spends beyond their means, is always the first in the building and the last to leave, or is overly protective of their work.

Become familiar with all aspects of your business.

Delegating is a must, but you should also keep track of what is going on in each department or area of responsibility. Employees will learn over time which clients pay in cash, who writes checks, the average daily and weekly deposit amounts, and how much money comes from outside sources. Ensure that each employee maintains detailed logs in your accounting software. An accountant can recommend a program that includes a check and balance system with daily opening and closing reports. In this manner, either you or the accountant will be able to run and analyze these reports.

Shared responsibilities should be delegated.

You should not allow any individual in your office to control the entire financial process. Instead, implement a controlled team approach. In this way, you will be able to identify who recorded which transactions, and you will be able to provide a higher level of accountability.

Organize an outside audit.

You may suffer serious financial damage if you become the victim of embezzlement. This is why it is important to hire a small business CPA to audit your finances for irregularities. It is likely that he or she will be able to keep track of your employees’ work and identify errors, whether they are honest mistakes or intentional.

It is advisable not to inform your staff if the numbers in your business don’t add up, as the suspect may destroy evidence if you notify them. Speak with a trusted CPA first so they can put a theft detection system in place.

The use of an accountant as a neutral, expert third party is a smart defense against employee embezzlement. Contact our firm today to schedule a complimentary initial consultation. It is our goal to assist you in setting up the appropriate systems.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

The Importance of a Profit and Loss Statement for Your Business | Baton Rouge CPA

Is your business successful? How do you know? You can take a look at your online reviews; positive reviews indicate that you are doing something right. You can analyze your customer base; serving new or more customers every month means that the word is spreading about your business. You can also search online for your business—if it shows up near the top of the search results, you’re on the right track.

However, these methods are abstract methods of measuring success. A business’s true success is determined by its financial performance. Does your business generate a profit? Are you losing money? If a business isn’t performing financially, it can fail.

You can measure business success through a profit and loss statement. Along with a balance sheet and cash flow statement (more on that later), it is one of the most significant financial statements for your small business. Continue reading if you’re ready to discover your true business success.

How does a profit and loss statement work? Why is it important?
A profit and loss statement, also known as an income statement, summarizes the income and expenses of a business for a given period. Profit and loss statements are typically generated monthly, quarterly, and annually.

Essentially, a profit and loss statement tells you if your business is profitable or losing money.

Profit and loss statements can be used to determine whether your business earns enough money to cover its costs and expenses. They also help to determine whether you can afford to pay yourself as a business owner and if your business model is sustainable.

Profit and loss statements can help you identify your top spending categories and where you might be able to make cuts if your profits aren’t where you want them to be. As a result, you can make informed business decisions-such as pricing your products and services-based on your lowest earning revenue streams.

Alternatively, if you’re doing well, the profit and loss statement can show you your top earning revenue streams, allowing you to concentrate on those.
A profit and loss statement can chart your business growth, reveal sales trends, and provide you with the information you need to make smart financial decisions.

Profit and loss statements consist of three key components.
Every income statement includes three main components, depending on your business’s income and expenses.

  1. The amount of money earned (or revenue received).
    A company’s income or revenue is defined as its operating revenue or revenue generated by its primary business activities, such as the sale of goods or services.

    Additionally, your profit and loss statement will include non-operating revenues or other income generated outside of your core business operations. Income from business capital, rental income, or strategic partnerships (such as advertising) all falls into this category.

    A company’s income statement may also include gains or one-time non-business activities that result in income, such as the sale of a company vehicle or long-term assets.
  2. Expenses
    The first expense on the profit and loss statement is the cost of goods sold. Materials and labor costs are included in the cost of goods sold by your business.

    An organization’s primary expenses include employee wages, sales commissions, and utilities (such as electricity).

    Other expenses or secondary expenses will also be included in the profit and loss statement. In general, these expenses are related to non-core business activities, such as paying interest on a loan, paying taxes, or paying one-time expenses such as legal fees.
  3. Net income (or revenue) amount
    Last but not least, the profit and loss statement will result in a net income figure. An increase in this number indicates that your business is profitable. In the event that it is negative, you have spent more than you have earned.

    Net income is calculated by taking into account all expenses, even unusual or one-time expenses. Thus, you can determine whether you earned or lost money during a given period. However, net operating income may be a better indicator of your business’s day-to-day operations.

    Profit and loss statements: how to prepare them.
    How does a profit and loss statement look in practice? What is the best way to create one? Using accounting software such as QuickBooks, generating an income statement is nearly instantaneous. Your income statement can be accessed and reviewed at any time using QuickBooks, which tracks and organizes your business’s accounting data for you.

    In the event that you do not use accounting software, a bookkeeper can prepare this report for you. If you are a new small business owner, an Excel income statement template may be a helpful starting point. As your business grows, it will become more difficult (and less accurate) to keep track of everything in Excel.

    You can rely on our accounting firm for all of your accounting needs. If you require assistance preparing a profit and loss statement or have questions about how to do so, please contact us. We are always available to assist you.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Protect the Fruits of Your Labor With Wealth Management | Baton Rouge CPA

Many people, especially small business owners, require advice about their financial planning—pensions, investments, retirement planning, and business protection, to name a few. A knowledgeable financial adviser can prove crucial to protecting your legacy.

Wealth management: what is it?

After a customer has signed a contract with a wealth management firm, the company provides advice to the customer on how to effectively manage their personal finances or investments.

What are the benefits of hiring an accountant?

The majority of accounting firms have a network of independent advisers who can provide impartial advice on any of the following topics:

Pensions: Are you considering investing your pot in order to receive an adjustable income? Do you plan to mix your pension options? Would you like to contribute more to your pension? Choosing the right accountant can be beneficial.

Planning for retirement: It is critical to prepare for tomorrow and beyond. When you reach retirement age, you may have amassed large sums in pensions, redundancies, or inheritances that you are uncertain how to protect.

Management and advice on investments: Understanding all the opportunities and associated risks will help you turn your pennies into pounds.

Tax planning for inheritances: Protect your family’s financial future, reduce your tax exposure, and prevent poor investment decisions.

Life insurance and critical illness coverage: There is no one who wants to think about the unforeseen and unexpected events that life sometimes brings. Therefore, it is all too easy to overlook the benefits that protection insurance might provide financially in the event of an accident, illness, or death. However, we insure our cars and houses without hesitation, so why not insure ourselves and our family members as well? Make sure that your loved ones don’t have to worry about money should the unthinkable happen.

Protecting your business: You need to ensure your business is adequately protected in case a key employee leaves. Directors and employees are fundamental to the long-term growth of a business.

Will writing: Many people do not have one, or believe it is too challenging to arrange, although it is one of the most significant documents you can have. With the help of an advisor, you can specify what should happen to your estate (whatever you own) and financial assets after your death.

Mortgages: Obtaining advice on the most appropriate mortgage for your circumstances will give you peace of mind when committing to such a major investment. As opposed to heading straight to your bank (who can only offer you their own products), advisers look around the market to find the most competitive rate for your situation, whether you are a private homeowner or a developer/landlord.

Whether by choice or not, life is often complex and inevitably involves change. A sound financial plan should be multifaceted and flexible enough to accommodate life’s unforeseen changes where possible. A professional adviser will make value-for-money recommendations and solutions based on your unique circumstances.

It is our mission as accountants to communicate complex information to clients with objectivity, integrity, and clarity in order to help customers readily comprehend the knowledge and advice that we are sharing with them. Please contact us to schedule a consultation if you would like to discuss any specific investment or gain advice regarding our wealth management services.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Why is Accounting the Most Important Thing for Your Business? | CPA in Baton Rouge LA

As a business owner, you know that there are a lot of things to keep track of. You need to make sure that your product is high-quality, that your employees are happy, and that your customers are satisfied. But what you might not realize is that accounting is the most important thing for your business.

Why is accounting important?

Accounting is critical for any business, large or small. It provides owners and managers with information that they can use to make sound decisions about the company. Accounting also helps businesses track their progress and performance over time.

There are many different types of accounting, but all businesses should have at least a basic understanding of financial accounting. Financial accounting focuses on the financial statements of a company, which show the company’s financial health. These statements include the balance sheet, income statement, and cash flow statement.

While accounting may seem like a dry and boring topic, it is essential for all businesses. A solid understanding of accounting can help you make better decisions about your company and improve your business’s bottom line.

The benefits of good accounting practices

There are many benefits to good accounting practices. Perhaps most importantly, good accounting helps ensure the financial health of a business. It can also help businesses save money, avoid legal problems, and make more informed strategic decisions.

Good accounting practices are essential for any business, large or small. By keeping accurate records and making sound financial decisions, businesses can avoid many common pitfalls and set themselves up for success.

The importance of financial discipline

Many people believe that financial success is all about making a lot of money. While it is true that you need to have a certain amount of money to be financially successful, it is not the only factor. One of the most important things to remember is that financial success is about more than simply making money. It is also about having the discipline to save and invest that money wisely.

Without financial discipline, it is very easy to spend all of your money and never achieve your financial goals. If you want to be financially successful, you need to be disciplined about how you manage your money. You need to have a budget and stick to it. You need to make sure you are saving enough money for your future. And you need to be willing to make sacrifices in the present to achieve your long-term financial goals.

The bottom line: how accounting can improve your business.

Accounting is critical to any business, large or small. It provides essential information about a company’s financial health and can be used to make key decisions about the future of the business.

While many businesses view accounting as a necessary evil, it can actually be a powerful tool to help improve your business. Our accountant in 70808 says that by understanding the basics of accounting and using it to your advantage, you can make your business more efficient, more profitable, and more successful.

In conclusion, accounting is the most important thing for your business because it provides critical information that you need to make sound financial decisions. Without accurate and timely financial information, it would be very difficult to run your business effectively. If you need assistance with your accounting, please contact our Baton Rouge accounting office today to schedule a consultation.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808

Effective Inventory Management Tips | Baton Rouge Accounting

A company’s inventory management is a crucial part of its profitability, but many small businesses don’t practice good inventory management when it comes to the products they sell. The shortage of inventory in some businesses means they are unable to supply enough available products to meet customer expectations. Often, this drives customers away, sometimes permanently to other businesses. 

Alternatively, some businesses go the other way, overstocking items just in case. Although your customers will always have the items they need, this strategy may lead to you losing money. In addition to tying up valuable cash flow, excess inventory also costs more to store and track. 

Inventory management lies somewhere between these two extremes. It takes more work and planning to achieve an efficient management process, but your profits will reflect your efforts.

The following are tips to help you effectively manage your inventory for increased profitability and cash flow.

  1. Determine which items are most important.

Inventory can be classified into priority groups to help you understand what items you need to order more of and more frequently, as well as those that are important to your business but may cost more and move more slowly. Typically, our Baton Rouge, LA accountant suggests separating your inventory into groups A, B, and C. A-group items are higher-ticket items that you need fewer of. The C category includes items with lower costs that sell quickly. B items fall in the middle: they have a moderate price and move out the door more slowly than C items but quicker than A items.

  1. Monitor all product information.

Keeping track of product information is important for inventory management. Information should include SKUs, barcodes, suppliers, countries of origin, and lot numbers. Consider also tracking the cost of each item over time so you’re aware of factors that may affect the cost, like scarcity and seasonality.

  1. Conduct an inventory audit.

Businesses sometimes conduct a comprehensive count once a year. Other companies spot-check their hottest items monthly, weekly, or even daily. Many do all three. Regularly check your inventory to ensure it matches what you think you have, regardless of how often you do it.

  1. Analyze the performance of suppliers.

Inventory problems can be caused by an unreliable supplier. If your supplier is habitually late with deliveries or frequently shorts your orders, it’s time for you to take action. Discuss the issues with your supplier and figure out what the problem is. As a result, you may need to switch partners, or you may run out of inventory due to uncertain stock levels.

  1. Follow the 80/20 rule when dealing with inventory.

80% of your profits come from 20% of your stocks, as a general rule. For this 20%, prioritize inventory management. You should know how many of these items you sell in a week or a month, and closely monitor them. Don’t neglect the items that make you the most money; manage them properly.

  1. Maintain consistency in how you receive stock.

It may seem obvious to make sure incoming inventory is processed, but do you have a standard process followed by all your employees, or does each employee handle incoming stock differently? The tiniest discrepancy in how new stock is taken in could have you scratching your head at the end of the month or year, wondering why your numbers don’t align with your purchase orders. Check that all staff that receives stock does it the same way and that all boxes are verified, received, and unpacked together, accurately counted, and checked for accuracy.

  1. Monitor sales.

Even though this seems like a no-brainer, it goes beyond simply adding up sales at the end of the day. Keeping track of what you sell and how many items you have in stock should be done daily. In addition, this data needs to be analyzed. Are you aware of when certain items sell faster or drop off? Is it a seasonal thing? Do you sell certain items on a particular day of the week? Are certain items always sold together? Maintaining control of your inventory requires understanding not just your sales totals but how items sell as well.

  1. Place your own orders for restocking.

Vendors sometimes offer to reorder inventory for you. The idea seems beneficial at first glance—allowing someone else to manage the process for some of your items can save you time and staff. However, your vendors may not have the same priorities as you. They want to move their items, while you want to stock items that will be most profitable for your business. Check your inventory and order restocks for all of your items yourself.

  1. Invest in inventory management software.

If your business is small enough, you can manage the first eight items on this list manually with spreadsheets and notebooks. However, as your business grows, you’ll spend more time managing inventory than you do on your business or risk your stock getting out of control. Inventory management software makes all these tasks a lot easier. You should make sure that any software solution you choose meets your needs, offers the analytics your business needs, and is easy to use.

  1. Make use of technology that integrates well.

Stock management doesn’t have to be limited to inventory management software. Mobile scanners and POS systems can help you stay organized. Prioritize systems that work together when investing in technology. Having a POS system that can’t communicate with your inventory management software isn’t the end of the world, but you might spend a lot of time transferring data from one system to another, which can result in inaccurate inventory counts.

Inventory management is a crucial part of the financial management of your business. For more helpful information, contact our accounting firm in Baton Rouge, LA to schedule a consultation.

Apple Guerin Company LLC
Phone: (255) 767-1020
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808