Are you thinking of making the leap to QuickBooks Enterprise? There are many good reasons to do this. QuickBooks isn’t just for small businesses and start-ups, anymore. In fact, Enterprise was designed to meet the complex needs of large and expanding businesses in a variety of industries. It supports up to 40 users at the same time, and comes with customizable role-based permissions, so that your data is secure, and easy to collaborate on.
Some of the software’s core features include advanced inventory management, customizable financial reporting, an improved dashboard, and AI-powered automation.
In this blog, we’ll walk you through everything you need to know about new features in QuickBooks Enterprise, and how they can help your business take your financial analysis to the next level.
What’s New In QuickBooks Enterprise?
You may think that software giants like QuickBooks release new versions and updates simply to make more money, but that’s not the case. Like any business, it’s about supply and demand. Your software needs to keep up with the growing and evolving needs of your business. That’s why regularly updating to the latest version of QuickBooks Enterprise is the first step towards maximizing your productivity and making informed decisions.
It means you’ll always have access to the newest features and tools, for added security, compliance, and support. Now let’s take a look at these in detail.
Introducing the Inventory Turnover Report
The Inventory Turnover Report is one of the many recent additions to QuickBooks Enterprise, especially for the e-commerce industry. It provides your team with critical insights into how efficiently your inventory is being sold and replenished. With this data, you can improve decision-making and operational efficiency.
So, how does it work? The report calculates two key metrics – your inventory turnover ratio, and your inventory turnover days.
The former helps you determine how often your company cycles through turnover annually. It is calculated by dividing the total cost of goods sold (COGS) by your average inventory value over a specific period. For instance, say your COGS is $50,000 and your average inventory value is $20,000, the turnover ratio would be 2.5. This indicates that your business cycles through its inventory 2.5 times a year.
So what about Inventory Turnover Days? This indicates the average number of days it takes to sell your inventory. It’s worked out by dividing the number of days in a period by your inventory turnover ratio. Staying with the example above, with a turnover ratio of 2.5, that means it would take approximately 146 days to sell your inventory.
With these metrics, QuickBooks Enterprise helps you assess the efficiency of your inventory management practices. After all, this means you have the necessary data to pinpoint which items are moving too slowly, or are overstocked. By identifying these areas for improvement, your team will be able to make better purchase decisions while improving cash flow management.
Improve your report readability
QuickBooks Enterprise has also introduced enhancements to report readability, with zoom controls and optional grid lines. These are designed to improve the clarity and usability of your financial and operational reports, for better data analysis and decision-making.
Enhanced zoom controls make it possible for your team to adjust the zoom level of reports directly within QuickBooks. With scaling from between 75% and 225%, it’s now possible to read detailed financial data without having to change the report’s layout or font size, for easy on-screen readability.
And with optional grid lines available in printed reports like Balance Sheet by Class, Payroll Summary, and Profit & Loss reports, you can delineate rows and columns, to visually separate data points, and effortlessly follow data across the page. This is a great way to reduce the risk of misreading any figures, and improve data analysis.
Access the Landed Cost Calculator
The Landed Cost Calculator in QuickBooks Enterprise is a crucial tool for any business that needs to accurately determine their total inventory cost. In a nutshell, it lets you allocate additional costs beyond the purchase price to your inventory items.
By incorporating a number of additional expenses incurred to bring your products into inventory, like shipping, customs duties, insurance, and handling fees, the calculator can give you a comprehensive view of your product costs, and determine your true COGS. With this, your team can easily conduct accurate profitability analyses, and have the necessary data for more informed pricing strategies to maintain your desired profit margins.
How do the New QuickBooks Enterprise Features Work Together?
With the Inventory Turnover Report, Landed Cost Calculator, and improved report readability, you can enhance operational insights and decision-making. This can directly impact your scalability and your bottom line. With these features, QuickBooks Enterprise offers you a holistic approach to business management, through informed decisions about your inventory, accurate financial reporting, and strategic planning.
Need help navigating QuickBooks Enterprise?
Our team has decades of combined experience with accounting software like QuickBooks. If you need help with implementation, data migration, or outsourced services, schedule a Discovery Call and speak to a pro today.
The information presented in this blog article is provided for informational purposes only. The information does not constitute legal, accounting, tax advice, or other professional services. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information contained herein. Use the information at your own risk. We disclaim all liability for any actions taken or not taken based on the contents of this blog. The use or interpretation of this information is solely at your discretion. For full guidance, consult with qualified professionals in the relevant fields.