I would like some advice on inventory management

[freek]

I have a question for people who do e-commerce or another form of mainly selling products. How do you deal with inventory management? I was re-doing my books for this year and it took a lot of time, this is how i do it in FIFO (first in first out)

I am using a online bookkeeping program whenever i buy stock i add the bought inventory to the invoice like this:

Then at the end of the month i get an invoice from my platform and add the sold products to the invoice:


How i calculate COGS:

Count inventory at the last day of the month and compare the difference with last month - newly bought stock.

Use First in first out to acurately calculate the total cost of inventory sold. The red stripes are the productnames. The x means the batch sold out.


The calculation is automated in excel, this is a small part but you get the idear:


Then at the end of the month the bookkeeping program actualizes the inventory.

It works but i feel like there must be an easier way to do this. Can anyone recommend me a good software or a different way to do all this. Thanks in advance!

 

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[OverByte]

Look up OMS or order management system. They will do this automatically, handle purchase orders, etc. one such example is Cin7.

Many people also use QBO (quickbooks online) as that's the standard for accounting. It definitely supports FIFO costing however I find it's inventory management is half baked.

If you are doing good volume and definitely if you sell cross channel (ie Shopify and Amazon) you likely want a dedicated OMS. Most OMS will integrate with QBO.

 

[freek]

Look up OMS or order management system. They will do this automatically, handle purchase orders, etc. one such example is Cin7.

Many people also use QBO (quickbooks online) as that's the standard for accounting. It definitely supports FIFO costing however I find it's inventory management is half baked.

If you are doing good volume and definitely if you sell cross channel (ie Shopify and Amazon) you likely want a dedicated OMS. Most OMS will integrate with QBO.

Great advice, thanks! I'm going to look into this as i slowly am starting to sell cross channel more and more. I'm going to try out shopify's system first