Comparing the inventory management features of Xero and Zoho Books
As a business owner, managing inventory can be a challenging task. That's why choosing the right accounting software that meets your inventory management needs is essential. In this blog, we'll be comparing two popular accounting software, Xero and Zoho Books, based on their inventory management features.
Xero Vs. Zoho Books: Inventory Management
1. Tracking inventory levels
Inventory levels tracking is an essential feature for any accounting software. Xero's inventory management feature tracks inventory levels in real-time and updates the inventory balance automatically. On the other hand, Zoho Books' inventory management feature also tracks inventory levels but doesn't update the inventory balance automatically, which means you need to update the inventory balance manually.
2. Multiple Warehouses
If your business has multiple warehouses, it's essential to choose an accounting software that can handle them. Xero only allows tracking inventory in one location, while Zoho Books offers multi-warehouse management, making it a better option if you need to manage inventory across multiple locations.
3. Bill of Materials
A Bill of Materials (BOM) is a list of the raw materials, components, and sub-assemblies required to manufacture a finished product. Xero offers BOM functionality as an add-on, while Zoho Books includes the feature in its inventory management module by default.
4. Costing methods
Both Xero and Zoho Books offer different costing methods, which include costly-first-in-first-out (FIFO), average costing, and last-in-first-out (LIFO). However, Zoho Books goes an extra mile by offering specific identification costing (SIC), which assigns a specific cost to each item, making cost management more accurate.
Conclusion
Choosing the right accounting software for your business is a crucial decision. When it comes to inventory management, Xero and Zoho Books both offer excellent features. Suppose your business requires multi-warehouse management, BOM management, and specific identification costing. In that case, Zoho Books is a better option. However, if these features are not essential, Xero may be the better choice.
We hope you found this comparison helpful. If you have any questions or suggestions, feel free to leave a comment below.