Inventory, cogs and stock tracking help for handmade sellers.
Some small manufacturers start tracking lot numbers using written logs and excel spreadsheets, however as the exact relationship between purchases, manufactures and orders can be quite complex, the use of a spreadsheet can lead to errors and inconsistencies as your business grows.
Etsy has a range of different features that can be used to track quantity levels of product inventory. In this blog post, we'll discuss how these features work and how they can be best utilised to ensure that you are always on top of your product stock.
As a handmade business, once you accumulate a certain amount of inventory it starts to become a priority to ensure that you have it organised in some sort of fashion that allows you to access it quickly and efficiently.
As Craftybase is a perpetual inventory system, your material unit prices are continuously recalculated based on the purchases, manufactures and adjustments you make through the year. So how do we do this exactly? This post is the first in a series that aims to demystify some of the calculations we make in order to provide you with your inventory totals.
The big end of year (EOY) inventory count fills most handmade sellers with dread and anxiety. As it can take weeks to account for every button, clasp and sq inch of fabric, for small self employed businesses this means effectively closing their business during stocktake time.
The IRS and GAAP (Generally Accepted Accounting Principles) rules both state that you have the choice to either count your complete inventory on an annual basis once a year or maintain a perpetual (constantly counting) counting system. So, which method of tracking is generally best for a handmade business?
Determining if you need to keep proper inventory records for your handmade business can be hard to get a definite answer on: there will be some that will tell you that if you have a small turnover or are treating it “like a hobby” it’s not really required or just not worth the trouble. Others will say that it is incredibly important to track your inventory no matter your size.
Staying on top of your inventory levels is one of the most challenging things about running a small handmade business. Holding too much stock can tie up a huge amount of your cashflow, while not keeping up with demand can lead to loss of sales: both are situations you need to avoid when building up your burgeoning business.
We ♥ to help handmade sellers just like you to become more successful. Please join our newsletter to receive regular updates and actionable tips on how to take your maker business to the next level!