WooCommerce barcodes help you automate and optimize your business, from inventory management to stock taking. But which is the best for manufacturers to use?
Does Xero Track Raw Materials?
The simple answer is no, you can’t use Xero for tracking raw materials or your work-in-progress (WIP manufacturing). You can only track the inventory that is bought and sold as a finished product.
However, there are a few workarounds to track raw materials with Xero, but these will be ineffective if your business needs advanced inventory tracking for:
- High volumes of raw materials and items;
- Following a make to order (MTO) workflow since you can’t operate at a negative inventory with Xero;
- Using bespoke manufacturing; and
- Monitoring the progress of your production.
- Straight from the horse’s mouth, if you need advanced inventory features and tracking raw materials with Xero, a specialized app will be more suitable.
But, don’t panic, as there’s already more than enough panic in the world nowadays.
We’re here to bring calm and raise awareness for finding a solution to tracking your Xero raw materials.
If you’re well underway to using Xero, we’d recommend skipping to the “Why Use Third-Party Xero Raw Materials Management Solutions?” chapter.
Otherwise, let’s quickly bring you up to speed with tracking raw material in accounting software.
Xero is a fabulous piece of tool built specifically to help you manage your business’s bookkeeping.
It also comes with basic inventory management features, though these have been catered more to retailers or drop shippers.
And unfortunately for direct-to-consumer (D2C) manufacturers, it doesn’t support manufacturing or accounting entry raw material consumption (at least not directly, anyway).
Though it’s not all doom and gloom for us manufacturers, as Xero helps you easily save information from previous transactions such as:
- Default price;
- Account information;
- Tax rates; and
- Description details.
Helping you create a personalized item list that will auto-fill future transaction fields, and easily track your cost of goods sold (COGS).
So, don’t wash your hands of Xero if you think you need it to do more for your manufacturing business.
We’re going to look further into does Xero track raw materials, the limitations, the workarounds, and how you can implement third-party tools to bridge the manufacturing gap.