Can Xero Manage Inventory?

Overview of Xero Inventory

Yes, Xero offers inventory management to help businesses manage their operations and take advantage of an all-in-one system. However, the inventory module of Xero is basic and allows you to manage the general tasks such as tracking items in stock, real-time view of the stock, adding items to invoices, view of the selling items, etc.

If your business demands sophisticated inventory features, such as multi-site inventory management, automatic purchase orders, complex sales orders, and more, you can integrate Xero with an advanced inventory system or choose Xero Add-ons from the marketplace. Importantly, Xero offers APIs to integrate it with other systems and centrally manage your inventory and accounting operations.

Tracking Inventory

You can track and find the cost of items you sell using the Xero inventory module. The tool also enables you to get the accurate quantity and value of the stock on hand. This allows you to make demand planning and backorder products that are fast-moving.

The accounting gets simplified with each sale as Xero records purchase costs and revenue in the same accounting period. On the flip side of the coin, the inventory module of Xero can’t track raw materials and incomplete goods as the tool is designed to manage only the finished goods.

Simplified Product Management

The features to convert each inventory into products in a few clicks minimise most of the work related to product management and improve organisational efficiency. The inventory module of Xero has features to add photos and contracts to each stock and adjust the value and or quantity of the items.

The ability to add the supplier contract to each inventory allows you to improve your supplier relationships and ensure the availability of stock all the time for optimal sales. Similarly, attaching the photos to each inventory help you convert them to products on your frontend system.

Hassle-free Invoice Management

The inventory module of Xero also gives you a number of invoice management features to simplify your buying and selling. You can create invoices, quotes, and purchase orders with pre-set product descriptions and prices and save them for regular sales and purchases.

Additionally, you can select items to automatically add them to quotes, invoices, and purchase orders. The module also gives you options to change the pre-populated description, sales tax, and price in a few clicks. That means you can offer customised products with personalised prices to your customers hassle-free.

Choose An Inventory App

The Xero App Store offers several inventory apps that enable you to the extent the features and functionalities of your accounting tool. You can search and identify an inventory app that fits your functional requirements.

Do you want to plan your inventory and avoid the issues such as “out of stock”? Inventory Planner is an ideal tool for you with sales forecasting, financial planning, purchase orders, and much more. With the right amount of stock, you better manage out of stock issues and warehousing costs.

Choosing an inventory app can also help you overcome most of the challenges you experience during inventory tracking. You have multiple app solutions to track negative inventory to sort the common accounting and inventory reporting bottlenecks.