Xero bookkeepers give tips on inventory management

By Sky Accountants

Inventory management can be challenging for restaurant, café, pub and club owners but they cannot escape it. Keeping accurate inventory records is important as it impacts the business’ ability to offer a high-quality product, a small error can have a big impact in the food industry.

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It would be ideal to consult with Xero bookkeepers to learn how you can manage your inventory from the start, to save money and increase efficiency. Most POS systems can help you with stock-take, but it has to be set up properly. Everyone on your team should be trained in restaurant stocktaking. Management of this can be done at different levels. Through inventory reporting shifts managers are able to alert the next shift of any issues. Spillage, rotten food and errors should also be noted as these cannot be tracked automatically by the POS system. Your team should be able to report these as accurately as they can. Everyone on the team should understand what sitting inventory, variance, usage, yield and depletion mean.

It is also a good idea to have two or more people doing the stocktake to minimize the risk of human error or employee theft. Structure your stocktake sheet based on the layout of your kitchen so your staff can easily move from one place to another.

An organised kitchen and storage area can assist a faster and more efficient stock-take. Your team can practice the first in, first out process to reduce the chances of food going bad and to efficiently use the sitting inventory. You can label the food with receipt and expiry dates, so the team can take the items that will expire soon.

With Xero and the assistance of a Xero bookkeeper, you can stock-take regularly. Make sure your staff stick to the schedule. The stock-take should be conducted at around the same time of the day and week for your data to remain consistent. This will allow you to forecast how much to order. Do it before a new order comes in and check your inventory before adding new stock.

There will, from time to time, be variances in inventory figures but you can limit them by understanding where they come from. Establish a clear process and implement automated systems to reduce food waste.

If you want to start automating, click here to speak to Xero bookkeepers and business experts. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

As you look for different ways to grow and improve your business, seeking professional advice from a business accountant and consultant could prove to be an important and helpful decision.

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