How to use Kardex accounting in 6 simple steps

The Kardex is one of those essential office supplies that allow you to do your job in the best way. It is an accounting record that allows you to keep a totally detailed control of all outgoing and incoming items or products from your inventory or even your warehouse. The Kardex is a tool that allows you to maintain optimal management of all your resources and also helps you ensure you keep accurate accounts of all your business operations. Do you know how to use the Kardex accounting system? In this article, we explain the entire process in 6 simple steps.

1. Identify the supplies

To start, it is essential to be completely sure which products or supplies you will track using the Kardex. To make this process much simpler, you can assign a unique code to each one, making it easier to identify them and keep track of each one's accounting.

2. Create a record

Your inventory record must be prepared in a clear and easy-to-understand format for you or anyone who will work with it, thus simplifying the entire process.

For your record to be complete, it must contain the following information: date, document number, unit price, total value, and balance.

3. Record entries

If you want to learn how to use Kardex accounting correctly, you must keep an entry record every time a product or supply arrives at your warehouse. This way, you can have perfect control of all the products you have available.

This record must be kept in the Kardex, and the information you need is the date, the document number, the quantity of products or supplies, and the unit price of each.

4. Record exits

As with entry records, you must keep a record of products or supplies that are removed from your inventory, and this must also be recorded in your Kardex.

The information you will need is the date, document number, quantity removed, and unit price of the product or products.

5. Calculate the balance

When we talk about the balance, we are referring to the quantity of products or supplies in the inventory after each entry or exit. What you need to do to calculate it is to add the quantity of entries and then subtract the quantity of exits. This way, you will have a much clearer understanding of the available balance.

6. Periodic review

Keep in mind that it is very important to perform a review every so often to keep the Kardex updated and ensure that the information stipulated there is accurate and matches your products or supplies.

Periodic review allows you to detect possible errors and correct them.

Why is it important to know how to use Kardex accounting?

The Kardex, as you may have noticed, is a very useful tool for keeping efficient control of all products or supplies available in your warehouse. If you know how to use it correctly, you can keep accurate accounts of all your business operations and maintain optimal management of your resources.

Optimization of financial management

Effective use of the Kardex also has a direct impact on financial management:

• Improves operational efficiency: By reducing errors and improving inventory accuracy, you lower operational costs and increase efficiency.
• Facilitates auditing and compliance: Accurate record-keeping facilitates auditing and compliance with accounting and tax regulations.
• Prevention of overstock and stockouts: By having detailed inventory control, you avoid the costs associated with excess or lack of stock.

Improved decision-making

With a well-managed Kardex system, you have a solid foundation for making informed decisions:

• Optimized purchasing strategies: Based on consumption patterns and trends, you can plan your purchases more effectively.
• Production planning: Knowing your stock levels, you can adjust your production levels to meet demand without generating excesses.

Characteristics of the manual Kardex

1. Simplicity: Not requiring specialized software or hardware, the manual Kardex is easy to implement and maintain.
2. Low cost: Ideal for small businesses with limited resources, as it only needs paper, pens, and a basic storage system.
3. Flexibility: Allows companies to customize their system according to their specific needs and the nature of their products.
4. Technological autonomy: It does not depend on electronic devices, making it ideal in situations where technology is not a viable option.

Advantages of the manual Kardex

• Accessibility: It is easy to use and does not require specialized training.
• Immediate control: Allows for quick and visual review of inventory status.
• Adaptability: Adapts to any type of product or business.
• Lower technological risk: Does not suffer from system crashes or electronic data loss.

Selecting the appropriate Kardex type depends on the specific needs of the company, the type of products handled, inventory turnover, and the company's financial policies. Each method has its advantages and considerations, so it is important to evaluate them carefully to optimize inventory management.

The Kardex improves customer service by providing an accurate and updated inventory record, allowing quick responses to inquiries about product availability. This efficient management reduces order errors, facilitates timely replenishment, and enables personalized recommendations. Additionally, by always having the correct information, confidence and transparency increase, generating a more satisfactory shopping experience for customers.

At Panafargo, one of the largest stationery stores in Medellín, you can find this and many other office supplies to ensure the correct development of your work.

Discover all our products now!