3 Smart Tips to Stop Struggling with Inventory Management
Managing inventory might not be the flashiest part of running a small business—but it’s one of the most critical. Poor inventory management can lead to cash flow headaches, missed sales opportunities, and even unexpected tax issues. The good news? You don’t have to stay stuck in the struggle.
Here are three expert-backed tips to help you take control of your inventory and your bottom line.
One of the most common pitfalls for small business owners is relying on gut instinct when ordering inventory. While intuition has its place, your purchasing decisions should be rooted in data.
Tip: Analyze past sales trends, account for seasonal fluctuations, and consider supplier lead times when placing orders.
Pro Tip: Use inventory software that integrates with your accounting system. This lets you track what’s selling, when, and how quickly giving you the insights you need to stay ahead.
At Schwartz & Associates CPA, we help our clients transform inventory data into clear financial insights, so you always know how your inventory is impacting your cash flow.
Not all products are created equal. In fact, about 20% of your inventory typically drives 80% of your profits. Knowing which items your top performers are helps prevent overstocking slow movers and understocking best-sellers.
Tip: Conduct regular inventory audits to identify which products are contributing the most to your revenue.
Pro Tip: Focus your time, energy, and budget on the items doing the heavy lifting for your business.
If your inventory numbers don’t match your financial reports, you could be in for a surprise come tax season. Inaccurate inventory records can distort your cost of goods sold (COGS), create tax reporting issues, and cause serious cash flow disruptions.
Tip: Reconcile inventory at least once a month—especially before closing your books.
Our team at Schwartz & Associates CPA provides outsourced accounting and inventory reconciliation services, so you can focus on growing your business without the stress of backend errors.
Inventory management doesn’t have to be overwhelming. With the right strategy, smart tools, and a proactive accounting partner by your side, your inventory can become a strength—not a struggle.
Let’s take the guesswork out of your numbers.
Schedule a call with Schwartz & Associates CPA today. Proudly serving small businesses across South Jersey.