Advanced Inventory Management
In the previous chapter, we discussed how Etsy, Square, Shopify, and other platforms allow you to easily manage sales and inventory for your online store but don’t take into account all of the expenses that you incur, such as rent, payroll, and utilities. If you sell products in a brick-and-mortar store or out of your garage, you can easily keep track of these expenses as well as product orders, on-hand stock, and product sales to customers in QBO. While QBO is not ideal for the complex needs a manufacturing and wholesale business would require, it has the capability to manage simple, straightforward inventory.
In our Small Business Bookkeeping chapter, available as bonus content at https://packt.link/supplementary-content-9781836649977, we discuss three inventory methods: LIFO (last-in, first-out), FIFO (first-in, first-out), and average cost. QBO uses the FIFO method to track inventory. If you are not familiar with inventory methods, consult...
