Stop Letting Inventory Kill Your Cash

Inventory can make or break your cash flow. Too much stock ties up money you could use to pay bills, invest, or grow. Too little stock leads to missed sales and frustrated customers. Here’s how to strike the right balance.

Why Inventory Hurts Cash Flow

1. Money is locked in products sitting on shelves
2. Overstocking increases storage and spoilage costs
3. Slow-moving items reduce your ability to reinvest
4. Poor tracking leads to blind decision-making

How to Fix It

1. Track what sells and what doesn’t.

Use real sales data — not gut feeling — to decide what to reorder.

2. Set reorder points.

Never buy “just because” — set a minimum quantity that triggers a reorder.

3. Reduce dead stock.

Discount, bundle, or clear slow-moving items to unlock cash.

4. Forecast demand.

Plan inventory based on seasons, trends, and customer behaviour.

5. Simplify your product range.
Sometimes fewer items = faster sales and better margins.

How Fedha Books Helps

Fedha Books provides real-time expense tracking and cost visibility so you always know how much inventory is draining your cash.

How to Price for Profit, Not Just Survival

Most small businesses price based on what competitors charge — but that doesn’t guarantee profit. Smart pricing ensures your business can grow, reinvest, and stay sustainable.

The Problem with “Survival Pricing”

1. It ignores your true costs
2. It leaves no room for taxes or unexpected expenses
3. It limits your ability to scale
4. It traps you in low-margin work

How to Price for Real Profit

1. Know your full costs.
Include materials, labor, overhead, taxes, and time.

2. Set a minimum profit margin.
Every product or service must have a target — e.g., 20%–40%.

3. Charge for value, not hours.
Position your offer based on benefits and outcomes.

4. Use tiered pricing.
Offer multiple packages (Basic / Growth / Pro) to increase average revenue.

5. Review prices every 6–12 months.
Inflation, costs, and demand all change — your prices should too.

How Fedha Books Helps

With clear reports and cost insights, Fedha Books helps you understand your margins so you can price confidently and profitably.

When to Hire vs. Outsource Accounting

Every business reaches a point where DIY bookkeeping no longer works. But should you hire an in-house accountant or outsource to a professional service? Here’s how to decide.

When to Hire In-House

Hire someone full-time when:

1. You have high transaction volume
2. You need daily financial oversight
3. You want strategic financial planning internally
4. Your business has complex reporting needs

Hiring makes sense for large or fast-scaling businesses with constant financial activity.

When to Outsource

Outsourcing is perfect when:

1. You want expert support at a lower cost
2. You need bookkeeping, payroll, and tax handled for you
3. You don’t have time to manage someone internally
4. Your financial volume is steady but not overwhelming

It also gives you access to tools, automation, and CPA oversight without paying a full-time salary.

Cost Comparison

1. In-house: Salary + benefits + software + training
2. Outsource: Fixed monthly fee with expert support

Outsourcing is almost always more affordable for SMEs.

How Fedha Books Helps

Fedha Books provides automated bookkeeping with real CPA oversight — giving you professional accuracy without the cost of a full in-house team.