After payroll expenses, the cost for frames, lenses, and contacts is typically a large expense for OD practices, and inventory is often a major asset on the financial statements. Are you confident that your inventory is appropriately managed, and do you have an accurate handle on what you have in stock at any given moment?
It’s important to manage your inventory effectively because your optical sales activity is dependent on having the right type and number of products available to your patients, at the right time. By optimizing your inventory levels, you avoid losing sales due to frames not being in stock, and you minimize the cost of having too much in stock for lower-demand frames. Here are some tips:
If you don’t currently track your sales inventory, implement a system. It all starts with having a way to track your products for sale. According to a 2017 State of Small Business Report, http://www.waspbarcode.com/small-business-report, businesses use a variety of methods, ranging from manual processes and Excel spreadsheets to more specialized software. Ideally, you want your inventory management system to integrate with your accounting system so that you have up-to-date financial information to help you understand how your business is doing so that you can make timely and well-informed decisions. For OD practices that already use Intuit’s QuickBooks accounting software, inventory valuations can be tracked in real-time and the financial statements are updated seamlessly for inventory changes.
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