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Stock control software options for small business. By David Carter

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3rd Jul 2007
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Following IT Zone's recent roundup of Accounting software for Small Businesses David Carter assembles companion material on stock control for small and medium size businesses.

Introduction to Stock Control – points to consider
The key point to grasp about stock control is that it is a completely different ball-game from accounting. Accounting is basically the same everywhere and involves just one small department – the accounts office. But stock control differs from one company to the next, and involves all departments.

So if a client asks you for your suggestions for a stock control package, your first response should be to ask straight back: What sort of company are you and what sort of stock control do you need?

My previous Introduction to stock control raises some of the key issues which you need to clarify about the company before you start talking to software suppliers.

If you supply goods to order
One crucial question is whether you supply goods ex-stock or to order. The standard design paradigm for stock control software is the “ex-stock” model, so if you should be OK if that’s the way you operate. But if you wait until the customer’s order is received before procuring the stock, then beware: most packages are not designed for this. As AccountingWEB member Carl Burton found out when he posted this question on Any Answers:

“We are a medium size wholesale supplier to manufacturers on a just-in-time basis. As such, we must be able to forecast our future stock levels for each product, for each day, for the next 2-3 months, based on constantly received new and amended sales orders.

“Most systems appear to simply look at the current stock figure, take off outstanding sales orders and add on outstanding purchase orders to give a projected stock figure. This is usually very misleading.

A lively discussion ensued with illustrations of the sort of reports Carl needs. Stock Control: Be careful when you supply goods to order.

Stock Control in a small shop
“Therese Elsmere was partner in a Worcester firm of accountants. Last summer, she and her husband decided on a change of lifestyle and took over a shop when its owner decided to retire. Since then they've been adapting it to sell what they know best - limited editions of fine art prints.”

After deciding to follow her dream by retiring from the profession and setting up a small shop that sold prints and fine art, Therese asked her fellow accountants for advice on how to handle stock control in her shop, should she install EPOS and related issues. Twenty-one comments were received from readers, both accountants and shop owners, which were summarised in Stock Control in a small shop.

Running Stock Control via Excel
When starting up a small business, there’s a lot to be said for running your initial accounts and stock control on Excel because it’s so easy and flexible.

In the software in a small shop debate above, reader Sue Hill described how she had written a highly effective stock control system in Excel for her saddlery business. She thought she would have to replace it some time with a proper stock control system but it seems to be running perfectly well even though she now stocks 3,400 stock items.

Anyone thinking of running their stock control through Excel should give close study to Stock Control in a Small Shop – comments from Sue Hills.

Which package? – Software lab tests
The software lab tests cover some 20 or so of the main mid-market accounts packages. Most of them concentrate on the accounting ledgers rather than stock control, but there are three that look at sales order processing and stock control.

I wanted to include these three because they are all strong on stock control and order processing, but are not as well-known to accountants as Sage, QuickBooks and Pegasus. They are:

Mamut Enterprise - Sales Order Processing
HansaWorld - Sales Order Processing
Anagram Encore - Sales Order Processing

Find the detailed reviews in the Mini Lab Test section on the Software Lab Test page

Replies (2)

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By carnmores
05th Jul 2007 20:14

Christopher
your product is good seen it in action - but it is not one one of the 3 recommended solutions - re read the article

dont lessen your cause thro spin

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By Busybeez
09th Mar 2011 15:26

Uptodate Review - Stock Control & Accounts Advice

I read this article with interest as I have been consulted by a small but growing limited company that supply & manufactire precision metal who are looking for accounts software that will do VAT, foreign currency, produce delivery notes, invoices, purchase orders etc..  Quickbooks is preferred to Sage and I am considering Quickbooks Premier as this incorporates Stock Control  I have read many quickbook reviews and my only concern is the invoicing as some say its not easy. 

I was interested in MYOB but found out that this will be taken off the market by Dec 2011.  I have read reviews on software that is recommended to replace MYOB, including Quickbooks Pro (that I am familiar with) and Mammut software as well as those not recommended.  Also reviewed Cloud accounting with Clearbooks in the lead.  Found an award winning company called Liquid - any reviews on this system.  Can it do everything?  Also cost effectiveness of monthly fees v paying outright. 

I am also considering an integrated front & back office system for accounts & stock control as their stock will be controlled by spreadsheets, On researching the various systems that include ERP, CRM, they might be more than we require at this stage of growth.   After reading this article it may be better for two separate systems for Stock & Accounts rather than an intergrated all singing & dancing one.   Came across Orderwise that is linked to Quickbooks, although 2 systems may not be cost effective.   So the dilemma is Standalone v Cloud - Quickbooks only or Quickbooks & Stock system or Integrated system.  I need to find a system(s) that will improve the efficiency of the company.  It seems a minefield with so many stystems available.   Does anyone work for a similar company that can advise?

As the article  was written in 2007 please can someone give me a review of the systems mentioned.  Are there others on the market worth taking a look at?    All replies will be greatly appreciated.

 

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