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Thomas Jefferson once defined coffee as “the favorite drink of the civilized world.” Tea-lovers might disagree with Jefferson, but coffee industry statistics are clear: Millions of people today can’t imagine starting their day without a cup of the stimulating beverage. Coffee Industry Facts - Key Findings Brazil is the largest coffee producer (33%) and the largest exporter in the world. In 2020, 15 countries imported 76.4% of all coffee. An average American drinks 3.1 cups of coffee daily. By 2030, global coffee consumption is expected to grow by one-third. The US imported $5.7 billion worth of coffee in 2020. In 2020, Starbucks had the largest share of the coffee market - 40%.  General Coffee Industry Statistics Wondering where your daily cup of coffee comes from? And whether there will be enough coffee for all coffee-lovers in the future? These statistics will provide the answers.  With 33% of all coffee produced, Brazil is the largest coffee bean producer globally.  (Statista) Overall, about 50 countries worldwide produce coffee. Brazil takes first place by producing nearly a third of all coffee - about 69 million 60-kilogram bags. It’s followed closely by Vietnam, which produces almost 29 million bags annually. Even though coffee originated in Africa, this continent contributes only 12% to the world’s total production. Small farmers still produce 60% of the world’s coffee. (Carto.com) Considering how popular coffee is, you might expect that growing it is a fully mechanized process that takes place on vast plantations. However, the reality is that only 21% of all coffee is produced on farms more than 50 hectares in size. The majority of producers still pick coffee by hand in an intensive, once-a-year harvest.  Global coffee consumption increased 2% between 2019 and 2021. (International Coffee Organization)  On the other hand, the production went slightly downward in the same period, which led to minimizing the gap between production and consumption to 1.2 million bags.  By 2030, global coffee consumption is expected to grow by one-third. (Bloomberg) The estimates show that by 2030, the world will need an additional 200 million bags to keep up with the growing demand. The main causes of this growth are the expected wage growth and increase in population.  In 2020, 15 countries accounted for 76.4% of all coffee imports.  (World’s Top Exports) The five countries that import the most coffee are the US, Germany, France, Italy, and Canada. In 2020, these countries imported 47.7% of the worldwide total. Between 2019 and 2020, Germany increased its import volume by 9.4%, while Italy and the US reduced it by 7.5% and 2.8%, respectively. Brazil holds the top spot for coffee beans export.  (Statista) Brazil is prominent in our coffee statistics not only as the largest coffee bean producer in the world but also as the number one exporter. In 2020, Brazil exported almost $5 billion worth of coffee. Switzerland was the second-largest exporter, with $2.85 billion.  Europe accounts for 33% of the global coffee market. (International Coffee Organization)  It seems like Europe has the most coffee drinkers altogether. It’s closely followed by Asia and Oceania, with a market share of 22%, followed by Latin America (20%), and North America (19%). The coffee market in Europe is expected to stay stable throughout 2025 and beyond.  The average price of a cup of coffee ranges from $0.46 in Iran to $7.77 in South Korea. (Global Coffee Report)  The average price of a cup of coffee varies drastically worldwide. Recent studies have determined South Korea is the most expensive country to drink a cup of coffee in, with the average price being $7.77. On the other hand, the cheapest is Iran, where the average cup of coffee costs $0.46.  Only about 10% of coffee is roasted before being exported.  (International Coffee Association) Essentially, 90% of all coffee is exported green, which means that roasting actually takes place in the importing country. Since roasting technology differs from country to country, it also affects the overall taste of the coffee. The United States Coffee Market Statistics In this section, we take a look at the US coffee industry size, information on consumer behavior, and imports and exports. In 2020, an average American drank two cups of coffee per day. (National Coffee Association) One of the most interesting coffee drinking facts from the 2020 National Coffee Association report is that the average American coffee-drinker consumes 3.1 cups of coffee per day. Sixty-two percent of Americans drink coffee every day, while seven out of 10 Americans drink coffee at least once a week. The US imported $5.7 billion worth of coffee in 2020. (World’s Top Exports) Americans are among the most avid coffee consumers in the world, with more than 400 million cups of coffee drank per day. 67% of Americans purchased their coffee from the supermarket in 2019. (Statista)  Since a considerable percentage of Americans prefer gourmet coffee, one would expect them to shop for their favorite blend at their local coffee roastery or other specialty coffee shop. Still, it appears that customer retention levels in this segment of the industry are not particularly high - only 9% regularly choose this option. The majority of consumers purchase their coffee at the supermarket, 14% order coffee online, on Amazon, or elsewhere, while 13% buy it at their local coffee shop, according to the specialty coffee industry statistics. Almost 60% of all coffee served in the US is brewed from premium beans. (National Coffee Association) While gourmet coffee is rising in popularity, traditional coffee consumption has decreased 10% from 2019 to 2020.  In 2020, Starbucks had the most coffee shops in the US.  (Statista) With 15,444 stores in the US, Starbucks holds 40% of the US coffee shop market. Dunkin’, the food franchise that made history with 3 million customers daily, holds the second spot with slightly more than 9,000 stores. Tim Hortons, in third place, has 630 stores in the US. When translated into coffee sales, Starbucks generated $21.31 trillion in 2019, while Dunkin’ had $9.2 trillion. 41% of Americans used a drip coffee maker to brew coffee in 2020. (Statista) The second most popular method was the single-cup brewer with 27%, while 12% used an espresso machine to make coffee at home. Only 10% of respondents prefer cold brewing, 8% purchase ready-to-drink coffee in a can or a jar, while 7% purchase instant coffee in a can or a jar. Bean-to-cup brewer is used by 6%, while the remaining methods account for less than 5%.  Coffee Consumption Statistics Worldwide - by Demographic  Who are the people behind all these coffee-drinking facts and figures? Let’s find out. 72% of people over the age of 60 drink coffee every day. (National Coffee Association)  But it’s not just older adults who drink coffee regularly: More than half (54%) of Americans between the ages of 25 and 39 consume coffee, along with 40% of those aged 18-24. The latter group has, in fact, seen a 14% increase in coffee consumption since the beginning of 2021. In the US, women spend on average $400 more on coffee than men. (Perfect Brew) An average American woman spends approximately $2,327 each year on coffee, while an average man spends $1,934. Still, it seems that men simply drink cheaper coffee - if we were to compare coffee consumption per capita by gender, men take the lead with 2.22, compared to women’s 1.79.   Hispanic Americans are the most likely demographic group to drink coffee every day. (Perfect Brew) The survey conducted by the National Coffee Association looking to uncover coffee facts and statistics showed that Hispanic Americans are 65% more likely to consume coffee daily than members of any other ethnicity. 41% of millennials spent more money on coffee than on retirement plans in 2017. (Acorns Money Matters) In an Acorns study conducted in 2017, 41% of nearly 2,000 respondents born between the 1980s and early 2000s admitted to spending more on coffee than on retirement. Unsurprisingly, 39% also admitted to feeling anxious about their financial future.  Scientists and lab technicians are the heaviest coffee drinkers. (Perfect Brew) Among the top 15 professions that consume the most coffee, scientists and lab technicians take the top spot. Marketing and advertising professionals are second, while education administrators take the third spot. Writers and editors hold the fourth spot, while healthcare administrators take the fifth, according to a recent coffee industry analysis by Perfect Brew.  People aged 25-34 spend $2,000 in coffee shops yearly. (Amerisleep) There’s a stark difference between this age group and people over 65, who spend only $7 in coffee shops per year. People aged 18-24 spend $172 per year on average, while the 35-44 age group doesn’t shy away from spending $1,410. These figures could partially be the result of the shift toward remote work, as many remote workers find coffee shops to be more conducive to productivity than their homes.

Anyone who has ever been on a hunt for unique handmade items, vintage treasures, and local artisan products has most likely heard about Etsy. This creative online marketplace started out in 2005 as a project by a group of enthusiasts from Brooklyn, New York. Etsy has soon become an online refuge for artists and artisans from all over the world.  The platform has grown into a $33.75 billion business from very humble beginnings. If you're interested in learning more about this eCommerce giant and its journey to the top, check out our Etsy statistics below. Top Etsy Statistics: Editor’s Choice With a market cap of over $17 billion, Etsy is the 12th largest online marketplace globally. Etsy’s annual net income in 2021 reached $493 million. As of 2020, Etsy has 1,209 employees. 97% of Etsy sellers run their shops from home. 62% of sellers on Etsy are from the United States. In 2020, 81% of Etsy sellers identified as women. With a 25% seller share, Home & Living is the most popular category on Etsy. 71% of Etsy sellers consider it important to grow their business sustainably and responsibly. General Etsy Stats To better understand this eCommerce platform and its users, we've compiled a list of some general Etsy statistics. Read below to learn about the number of active buyers and sellers, the revenue Etsy has generated over the years, and the best-seller categories of products available for sale. With a market cap of over $17 billion, Etsy is the 12th largest online marketplace globally. (CompaniesMarketCap) With a market cap of $17.90b as of March 2022, Etsy scores above JD Health, Zalando, and Rakuten, to name a few prominent companies.  Etsy traffic statistics have increased majorly during 2020, boosting profits significantly. Nevertheless, the market is still dominated by eCommerce giants such as Amazon, Alibaba, Meituan, Jingdong, and Shopify. There were around 7.5 million active sellers on Etsy in 2021, a nearly 75% increase on 2020. (BussinessOfApps) Back in 2019, there were almost $2.7 million active sellers on Etsy. Only a year later, the figures went up over 60% to around 4.3 million people worldwide, only to balloon by nearly 75% to 7.5 million in 2021. As testified by many Etsy sellers, statistics have never looked so good. The reason behind such a steep surge is most likely the COVID-19 pandemic which forced many people to start selling online exclusively.  The number of active Etsy buyers reached 96.3 million in 2021. (BussinessOfApps) Compared to 2019, when some 46.3 million people bought goods on Etsy regularly, 2020 has brought a surge of over 75% for a record 81.8 million active buyers on the platform. This was then followed by a smaller but still impressive 17% increase to 96.3 million users in 2021. Judging by the Etsy buyer statistics, people have heartily embraced the online shopping model forced by the COVID-19 pandemic. As of 2020, Etsy has 1,209 employees. (Backlinko) We can get valuable insights by tracking workflow within a company. Etsy has been growing steadily over the past few years, and the growth was followed by an increase in the number of employees. The 2020 sales boom saw the workforce increase by 14.49%. These Etsy updated statistics do not include an additional 205 workers employed at Reverb, its daughter company. Most of the employees are based in the United States, but the company also has offices in Ireland, Germany, Canada, Australia, and more. Etsy Demographics Let’s take a closer look at the demographic stats and facts, as they provide insights into the target market for a product or service. Additionally, they can help identify new markets or assess the potential impact of changes in the economy or population on a business. By understanding the demographics of its customer base, a company can make better decisions about where to allocate its resources to maximize growth.  62% of Etsy’s sellers are from the United States. (Statista) Etsy seller statistics show the distribution of its sellers on a global level. As of June 2020, some 62% of Etsy's merchants were from the United States, while the remaining 38% come from other countries. The majority of them are from the UK (30%), followed by Canada (11%), Australia (7%), and  Germany (7%). Most of Etsy’s US sellers come from California (14%). (Statista) The figures from June 2020 indicate that 14 percent of the US Etsy sellers are located in California. During the measured period, Florida and Texas both contributed 7%, while Pennsylvania, North Carolina, and Washington had a 4% share of the total US seller market each. As of December 2020, 47.7% of Etsy employees were female. (Statista) We highly appreciate Etsy’s gender awareness and diversity politics, especially nowadays when women were only 5% of the CEOs appointed globally in 2020. Namely, the eCommerce giant has been trying to increase the number of women in leadership positions and on its Board of Directors. As of December 2020, 47.7 percent of its employees were female, along with 45.3% male workers and 7% that were classified as ‘other.’ Statistics on Etsy's global corporate demography indicate that the board positions are equally occupied by both males and females, with a 50-50% ratio.  In 2020, 81% of Etsy sellers identified as women. (Statista) (Etsy) The figures certainly show how one-sided the sellers’ market is, probably because women dominate the handmade arts & crafts niche. When it comes to Etsy users, statistics on the sellers used to favor women even more in the past. According to a report from 2015, as many as 86% of the sellers on the platform were female. 71% of Etsy sellers consider it important to grow their business sustainably and responsibly. (Etsy) Sustainability and value-driven manufacturing practices are essential to Etsy's community, as reflected in the items being sold on the site. This new approach to business resulted in self-organizing into online support groups. Nearly a quarter of Etsy sellers worldwide joined one of more than 10,000 Etsy Teams worldwide, where they can seek and provide support and collaboration opportunities.  97% of Etsy sellers run their shops from home. (Statista)  2020’s  Etsy statistics reveal that 97% of sellers run their shops from home. At the same time, 69% of respondents had started their Etsy shop as a way to supplement their income. For many Etsy sellers, their businesses are their primary source of income, and 69% of them consider their shop a business. More than half (55%) are multi-channel sellers.  Revenue and Sales Statistics Although Etsy's sale statistics recently didn't quite match the boom in 2020, the company is still going very strong. The pandemic has brought about a renewed interest in handmade and vintage items, increasing the platform’s popularity significantly in recent years. With a 25% seller share, Home & Living is the most popular category on Etsy. (Statista) Looking at the best-selling items on Etsy and their generated revenue, Statista compiled a list of the most popular categories among handmade Etsy sellers worldwide as of June 2020.  According to Etsy sales statistics by category, home and living is on the top of the list with a 25% seller share. This is followed by art and collectibles, which accounted for 21%, jewelry with 15%, and clothing with an 11% share.  The least popular group of products were pet supplies, electronics & accessories, and shoes, which accounted for only 1% of sellers each.  In 2020, Etsy was the eighth largest retail website in terms of online traffic. (Statista) The big dog among eCommerce websites, Amazon.com, had almost 3.68 billion visitors per month in 2020 followed by eBay.com with 1.01 billion visits on average each month. eBay, Rakuten, and Samsung also scored highly on the list.  With a monthly traffic average of 289.33 million visits, Etsy statistics had even top sellers jealous, contributing greatly to the platform’s huge revenue increase during that year. In 2020, Etsy generated $1.7 billion in total revenue. (Statista) The revenue of the online marketplace amounted to $1.7 billion in 2020, which represents a surge of more than 100 percent compared to the year before. Etsy had a market capitalization of $7.46 billion in 2019, just seven years after its official launch. According to industry experts, marketplace revenues (including sales listing and transaction fees), third-party payment processor fees, and seller service revenues are the company's main revenue streams.  Etsy’s annual net income in 2021 reached $493 million. (Statista) Looking at the Etsy sales statistics for 2021, there was a massive increase over the $349 million it made in 2020, which itself dwarfed 2019’s $95.89 million. The company is clearly doing something right, and at this rate, the future of eCommerce on the platform is looking very bright. Top sellers on Etsy earn $10,000 per year or more. (The Verge) Amid the many stories from Etsy's sellers regarding their earnings, the conclusion is that the most successful merchants earn $10,000 or more on the platform. Etsy shop statistics vary wildly between the various categories on the site, though. According to some top sellers, they get charged a flat 12% advertising fee that they cannot opt out of. This fee is 15% for other sellers, but that charge is optional.

Call centers are an inescapable element of running almost every customer-centric business. Regardless of whether you are offering a product or a service or using a call center to market them, you need to provide a line of communication with your customers.  Not all support and call centers actually require a phone line. Call center statistics show that the industry has moved online to a large degree, and many other trends are emerging as companies strive to provide a better customer experience.  Let’s see some of the most important stats about the call center industry in 2022. Call Center Industry Statistics - Key Findings The global market value of call centers is estimated to reach $496 billion by 2027. 87% of employees in call centers report high-stress levels at their job. The contact center software market will be worth $149.58 billion by 2030. Businesses lose approximately $75 billion yearly because of poor customer service. 35% of customers want customer support agents to help them resolve issues in one interaction. General Call Center Operation Statistics Call centers are an essential industry nowadays, especially as many people turn to customer support. After all, the world has made a significant shift toward performing most of its daily life online. So let's check some of the most important stats about this industry. The global market value of call centers is estimated to reach $496 billion by 2027. (Report Linker) Research suggests that the industry's value will keep increasing at a projected CAGR rate of 5.6% between 2020 and 2027. In-house call center solutions have a 5.5% projected growth rate during the same period, while outsourcing will grow by 5.9%. In 2020, US call centers accounted for 29.49% of the global call center market. (Report Linker) The overall global market was valued at $339.4 billion in 2020, with the US share at approximately $100.1 billion in 2020. Other notable markets worldwide were China, Japan, Canada, and Germany, all with strong growth estimates.  Almost a quarter of all call centers in the US made less than $250 million in 2020. (Statista) 24%, to be precise. 13% earned more than $25 billion. 4% made between $15 and $25 billion, while 19% earned anywhere from $5 to $15 billion, and another 19% made between $1 and $5 billion. The contact center software market will be worth $149.58 billion by 2030. (Grand View Research, Inc) According to call center statistics for software, the industry's market size is $28.09 billion in 2022, up from $23.9 billion in 2021. If it continues following the estimated CAGR of 23.2% between 2022 and 2030, it should reach a staggering $149.58 billion by 2030. In 2020, US call center businesses employed 2.83 million people. (Statista) The number of employees in the call center businesses grew steadily from 2014 when 2.51 million people worked in this industry. This trend changed in 2020, though, which saw a drop in the number of employees in the contact center industry compared to 2019’s 2.92 million. Businesses lose approximately $75 billion yearly because of poor customer service. (Forbes)  Based on research in NewVoiceMedia’s 2018 “Serial Switchers” report, Forbes announced in 2018 that many customers were abandoning companies due to poor customer service. Recent research conducted by Salesforce shows that 91% of customers will make another purchase at the same company after a good customer service experience.  In comparison, 70% said they would not buy a product from a company with long wait hours for customer support. If your company is struggling with similar issues, consider investing in call tracking software. Call Center Stats on Customer Satisfaction  Customer support is an essential part of providing a quality service, and companies need to pay close attention to customer satisfaction in this area. The following stats tell us more about customer preferences regarding call centers and support. 77% of customers appreciate proactive customer service. (Zippia) On top of wanting instant support, customers also expect customer representatives and sales reps to anticipate their needs and address them accordingly. Companies that can do that are much more popular with customers. 76% of customers prefer using different support channels depending on context. (Salesforce) According to the call center analysis by Salesforce, email is still the most popular customer support channel, followed by phone and in-person support. Online chat and mobile apps take fourth and fifth place, respectively. 78% of customers don’t like support agents that sound like they are reading from a script. (Zippia) Personalized sales and support communication has been the key for a while now. 52% of customers expect custom-tailored offers at all times, and 66% want the companies “to understand their unique needs and expectations.”  This is no small feat, especially for the largest call center companies serving thousands of customers. Ensuring your company uses good call center software is only half the battle. You’ll still need quality support agents who can convince your customers that their needs are important to your company. 50% of customers believe that the customer service and support from most companies need a major overhaul. (Salesforce) While half of the customers expect better customer support, 60% agree that companies need to improve their trustworthiness, and 55% think companies should work more on their environmental practices. Statistics show that companies focusing on “making the world a better place” always do well. Surprisingly, improving the product was ranked lower, as was using better technology and working on the overall business model. 35% of customers want customer support agents to help them resolve issues in one interaction. (Microsoft’s 2020 Report) Quick problem resolution should be one of the most important call center metrics. Over a third of customers in a Microsoft survey from 2019 said that resolving issues in one interaction should be a priority for the customer support team. 31% claimed that getting a knowledgeable agent is the most important, and 20% said that not having to repeat the same information is crucial. The latter seems like a growing problem, as more than half of customers felt that the departments providing support are not always in sync.  These are definitely the key call center metrics that every company should pay attention to. 92% of consumers hesitate when buying a product if it has no customer reviews. (Fan & Fuel) Worse still, 35% might not buy a product at all after reading just one negative review. According to Zendesk, word of mouth is also extremely powerful: 95% of customers will tell others about a bad experience, and 87% will share good ones.  Unfortunately, another survey shows that 79% of consumers who shared their poor online experience with customer support got ignored. Companies making this mistake should consider hiring a good reputation management service, as it will help improve their sales in the long run. Must-Know Information About Call Center Workers Despite the push toward automatization, live agents are still the pillars of any good customer support team. Here are some stats about the call center workforce. There were approximately 286,696 call center agents employed in the US in 2021. (Zippia) The majority of call centers are located in Texas, or more specifically in Dallas and Houston. The average age of a call center employee is 40 years. Furthermore, 67.2% of all agents are women, while 27.9% are men. 87% of employees in call centers report high stress levels at their job. (Cornell University) Handling customer requests every day is not an easy job. Customer support agents are typically the first line of defense against angry customers, leading to very alarming call center stress statistics. 80% of agents experience angry customers blaming them for things out of their control.  Undefined expectations, lack of incentives, and boredom with mundane, repetitive tasks cause agents to be miserable at work, which, in return, translates into poorer customer experience stats across the board. The average salary of a call center employee is $27,765 per year. (Zippia) Salaries for new agents start at around $20,000 per annum. Those of the 10% top-performing agents can go up to $36,000 or more. The turnover rate for call center agents is over 40% globally. (ICMI) (Mercer) When these call center turnover statistics are compared to the 22% average turnover rate across all industries in the US, it’s easy to see that job satisfaction levels in call centers are troublingly low. Companies need to look into ways of making the job less stressful for their employees and using modern technologies such as AI bots to help facilitate communication with customers. Call Center Technology Trends Good implementation of modern technologies is essential for improving call center statistics and metrics. Let’s check how big of a role software plays in customer support these days.   90% of businesses that use it find live chat software helpful for streamlining call center operations.  (Zippia) According to Zippia’s findings published in December 2021, 29% of all businesses and 61% of those in the B2B sector already use live chat software. 32% of businesses are implementing CRM systems to boost sales and enhance customer relationships. (Zippia) Customer Relationship Management software has an excellent track record of increasing customer engagement. Unfortunately, according to customer service and call center metrics, only a third of businesses make use of it currently. Considering that 31% of customer support teams think that their companies see their work as an expense rather than an opportunity to increase sales, this is not all that surprising. 87% of global organizations that implemented AI did so believing it would give them an advantage over the competition. (Statista) According to Statista, almost 90% of the organizations that implemented AI did so to keep up with the competition, while only 63% did so due to customer demand. Pressure to reduce costs was also a major factor (72%), along with the ability to move into new business spheres (78%). In 2020, 37% of all messages to brand social media accounts were related to customer service issues. (Sprout Social) (Statista) However, most messages (59%) were positive, as customers wished to express their happiness with an excellent experience they’ve had with the brand.  Call center statistics show that in 2020, 75% more customers used  Instagram to message businesses, while Facebook saw a 20% growth in this category. If you are considering implementing social media into customer support options, keep in mind that 18% of customers expect an immediate response; it might be worth investing in social media management tools to help your support team out.

While some workplaces are more dangerous than others, any workplace can be hazardous. Every year, millions of workers get injured on the job, and many of these injuries are severe. The cost of workplace injuries is huge, not just in terms of medical expenses but also in terms of lost productivity and lost wages.  Keep reading our workplace injury statistics to find out how often these accidents occur and what the most common ways workers get hurt are.  Top Work Injury Stats - Editor’s Choice: In 2020, there were 3.2 million workplace injuries and illnesses in the US.  Sprains, strains, and tears were the most common injuries, with 266,530 cases recorded in 2020. Healthcare and social assistance was the most affected private sector, with 806,200 workers injured or sick.  There were 4,764 workplace fatalities in 2020. Most worker deaths happened in transportation incidents, with 1,778 cases recorded in 2020.  The total economic cost of workplace accidents and fatalities in 2019 was estimated at $171 billion.  The state with the most workplace fatalities in 2020 was Texas, with 469 cases.  With 355,200 cases, California was the state with the most occupational injuries and illnesses in 2020. OSHA’s most breached standard is for fall protection in construction. General Work Injury Statistics The latest Survey of Occupational Injuries and Illnesses conducted by the US Bureau of Labor Statistics shows that the number of workplace injuries in 2020 was lower compared to the previous years, but does that mean workplace safety conditions in the US have improved and that the workers have become more safety-aware? Not exactly. The main reason for the drop in preventable workplace injuries and deaths can be found in the decreased number of working hours. The disruption caused by the COVID-19 pandemic reduced the working hours by 9% for the latest survey period. There were approximately 3.2 million recorded cases of nonfatal occupational injuries and illnesses in the US during 2020.  (US Bureau of Labor Statistics)  Workplace accidents, statistics inform us, resulted in days away from work in 62% of cases.   Worldwide, about 340 million work-related accidents happen yearly.  (International Labour Organization) A further 160 million workers suffer illness at work. In the private sector, 2.7 per 100 full-time workers suffered nonfatal injuries and illness.  (US Bureau of Labor Statistics)  Furthermore, 1.7 out of 100 workers had to take days away from work because of accidents or illness.  The most common causes of nonfatal injuries and illnesses in the private sector that resulted in days away from work were sprains, strains, and tears, with 266,530 cases recorded in 2020. (US Bureau of Labor Statistics)   Workplace back injury statistics show that such accidents are common. They are followed by soreness and pain caused by work activities, fractures, while cuts, lacerations, and punctures are in a close third place.  Slips, trips, and falls are the most common workplace injuries, accounting for 33% of all cases.  (Thomas Marchese) Water or oil spills, iced walkways and steps, cables, wrinkled rugs, and poor lighting are the main culprits of slips, trips, and falls, statistics tell us. Thankfully, they are also among the most easily preventable causes.  Nonfatal injuries and illnesses were most common in healthcare and social assistance, affecting over 800,000 workers in these industries in 2020.  (US Bureau of Labor Statistics) Other private sectors with high case numbers were manufacturing and retail trade. Statistics for retail show that 341,100 workers were sick or injured in 2020, along with 373,300 workers in manufacturing.   Healthcare and social care are high-stress work environments with the highest injury rate - 5.5 per 100 workers.  (US Bureau of Labor Statistics) Workplace safety statistics also list agriculture, forestry, fishing, and hunting as sectors with frequently occurring accidents - 4.6 per 100 workers. They’re followed by transportation and warehousing at 4 per 100. Fires and explosions account for 3% of workplace injuries. (Thomas Marchese) Unfortunately, these types of incidents also have the highest casualty rate across workplace accidents.  Workplace Death Statistics Unfortunately, death is still part of workplace injury statistics, despite the improved safety regulations and protocols implemented to avoid preventable fatalities. The reason for hope is that fatal workplace accidents have declined from 2019. In 2020, there were 4,764 fatal work injuries in the US.  (US Bureau of Labor Statistics) This is a 10.7% drop from the Bureau’s 2019 report, which recorded 5,333 deaths. Furthermore, this is the lowest annual number since 2013.  The fatal work injury rate in 2020 was 3.4 per 100,000 full-time workers. (US Bureau of Labor Statistics) As mentioned, the work injury rates haven’t significantly declined. They merely reflect the fact there were fewer jobs and work hours in 2020 due to COVID-19. According to previous BLS workplace injury statistics, the rate in 2019 was 3.5 full-time workers per 100,000.  One worker died in the US every 111 minutes in 2020.  (US Bureau of Labor Statistics)  This number may seem staggering, but it’s significantly lower than in the period before the Occupational Safety and Health Act of 1970 was implemented. At 1,051, most fatalities were in the 55 to 64 age group.  (US Bureau of Labor Statistics)  The age group with the second-highest number of fatal workplace injuries are 45 to 54 year-olds. As the smallest portion of the US workforce, underage workers also had the fewest deaths - 26 in 2020. At 1,778, transportation incidents were the leading cause of death for workers in 2020. (US Bureau of Labor Statistics) Most often, these are roadway incidents involving a motorized land vehicle. Workplace fall statistics show that drops from higher elevations are also among the main causes of fatal occupational injuries.   22% of all fatal work injuries were suffered by Hispanic or Latino workers. (US Bureau of Labor Statistics) The Latin-American community in the US has seen increased rates of fatal work injuries. There were 1,088 deaths in 2019 and 1,072 in 2020. Despite the reduced work hours in 2020 and fewer preventable deaths, the rate actually increased by 2% since 2019.   Workplace Injury Cost Statistics It’s hard to estimate exactly what kind of an impact workplace injury had on each individual worker. However, the loss of work hours and wages are measurable indicators of the economic impact of occupational injuries. The total economic cost of work-related injuries in 2019 amounted to $171 billion.  (National Safety Council) The total includes more than just worker compensation and insurance. The most significant elements of the economic cost are wage and productivity losses ($53.9 billion) and administrative expenses ($59.7 billion). Medical fees and employers’ uninsured costs stood at $35.5 billion and $13.3 billion, respectively.  The average cost per worker was $1,100.  (National Safety Council) This figure represents the value of goods or services that each worker would have to produce to offset the cost caused by the accident. The expenses for a medically consulted injury were $42,000, while the expenses of a fatal workplace accident stood at $1.22 million in 2019. (National Safety Council) These numbers include estimated wage losses, costs of medical treatments, and employer expenses minus the damage to property or vehicles.  Injuries and fatalities in 2019 resulted in 70 million lost workdays.  (National Safety Council) However, if you include injuries that happened in the year before that prevented employees from attending work in 2019, the number of workdays lost rises to 105 million. Workplace Injury Statistics by State Texas had the highest number of fatal work injuries in 2020 - 469 recorded cases.  (US Bureau of Labor Statistics) This is still a significant drop compared to 2019, when 608 people lost their lives on their job. California comes in at a close second place with 463 cases, and Florida is third with 275 fatalities.  The state with the highest number of work injuries and illnesses in 2020 was California, with approximately 355,200 cases.  (US Bureau of Labor Statistics) This is almost twice the number of cases recorded in Texas during the same year (178,600). Workplace accident stats place the state of New York in the third position with 129,000 cases. States with the highest rates of nonfatal work injuries and illnesses are Maine, Vermont, Alaska, Washington, Oregon, Montana, and Minnesota.  (US Bureau of Labor Statistics) Maine had the highest rate of cases, with 4.3 per 100 full-time workers. The second state on the list is Vermont, with 3.6 per 100.  OSHA Injury Statistics The Occupational Safety and Health Administration is a federal agency that regulates workplace safety. It also keeps a record of what safety regulations are most often breached.  OSHA employs 1,850 inspectors.  (OSHA) These inspectors are in charge of the health and safety of more than 130 million workers across approximately 8 million workplaces in the US.  One compliance officer is in charge of approximately 70,000 workers.  (OSHA) OSHA has 10 regional offices and 85 offices in local areas. The federal organization conducted approximately 33,000 federal and 42,000 state inspections in 2019. Fall protection for construction workers is the most frequently breached OSHA standard.  (OSHA) Apart from fall protection, OSHA workplace injury statistics show that the Hazard Communication standard, Respiratory Protection, general scaffolding requirements, and requirements for the use of ladders in construction are the most commonly breached OSHA standards.  Since OSHA’s inception in 1970, worker deaths have dropped from 38 per day to 13 in 2020. (OSHA) OSHA had a significant impact on the safety and health of the US workforce. After it was established, illnesses and the most common workplace injuries have dropped from 10.9 per 100 workers to 2.7 in 2020. Closing Thoughts  Safer work practices and adhering to regulations have helped reduce the numbers in workplace injury statistics. In addition to having a good insurance plan for your business, it’s important not to dismiss caution and best practices, no matter in what sector your business operates.

Creating and sending purchase orders (POs) can be daunting for inexperienced business owners. For some, it can be hard to keep track of all of them as they pile up, while others stress about filling these important documents flawlessly to ensure smooth order processing. Thankfully, there is software available that can help manage the entire process, from start to finish. Businesses can leverage technology to create and send purchase orders quickly and accurately. These systems often come with additional features such as automated reminders, tracking capabilities, and more. Our article will answer all your PO questions - e.g., What is a purchase order? Why are they important? How do they work? - and teach you about the various ways businesses use purchase orders, as well as how to create and send them yourself. Purchase Order Definition So you've heard the term many times and are wondering, “What is a PO, exactly?” In a nutshell, a purchase order is a legally binding contract created by a buyer to communicate a seller's demand for goods or services. It is generated after the buyer and seller agree on the terms of sale, such as pricing, quantity, delivery date, and payment terms. The PO serves as a formal record of the details of the transaction between the two parties and can be used as a reference in case of any disputes. POs are typically used for business-to-business transactions and can be sent electronically, via fax, or by mail. A complete PO will include all relevant information, such as vendor details, product/service descriptions, prices, delivery methods, and payment conditions. Once it is received by the seller and accepted, it becomes subject to the terms both parties must abide by. The Role of a PO in Business POs are created anytime you need to buy anything from a vendor. For example, if a company needs to buy 500 chairs for an office renovation project, it would place an order using a PO system. This ensures both parties have clear documentation outlining the specifics of the transaction. The purchase order system is essential to any successful purchasing process and helps ensure goods and services are delivered on time and per the contract terms. It also allows companies to track their spending more accurately and helps them budget accordingly. Having a purchase order system in place also ensures better communication between buyers and sellers and eliminates any confusion over what has been ordered or agreed upon. This ultimately leads to more secure transactions with less risk of misunderstandings or legal action from either side. Why Is It Important to Have a Purchase Order? Imagine you are a business owner who has just been handed a PO from a potential new client. You've never seen one before, so you're not sure what it is exactly, but you should learn how to use it. Here are some reasons buyers should know the ins and outs of POs: To make sure they’re ordering the correct items To make sure they're getting the best price possible To make sure the order is correct and can be delivered on time To keep track of buyer and vendor expenses To make sure buyers are within budget By taking the time to learn more about this vital tool, business owners can streamline their operations and improve customer satisfaction. How do POs Work? A PO is essentially a document sent from a buyer to a seller, stating the products, quantities, and agreed prices for goods or services the seller will provide to the buyer. It also serves as an offer from the buyer to purchase those products or services at the given price. The PO serves as legal protection for both parties, and it must be approved by both before any transaction can take place. Once a purchase requisition form is filled and accepted, buyers are protected from price increases or ordering errors, as all costs and terms must be clearly stated in advance. The supplier typically then sends an invoice to the buyer, which contains all of the same information as the PO. This invoice signals that the order details have been finalized and are ready for payment. Once payment is received from the buyer, it signals that all obligations regarding the PO have been completed. How to Create a PO in a Few Easy Steps Log into the company’s procurement system or software and find the purchasing order form. Fill out the PO with all the necessary information, including supplier contact info, item name, description, quantity required, unit price, total cost, payment terms, delivery terms, and expected delivery date. Once you've completed the order form and double-checked all your entries for accuracy, submit the purchase order request to management for approval. Obtain a signed copy of the approved PO from the purchasing department manager before sending it to your supplier to ensure both sides have agreed on all of its contents in writing. Forward an electronic or hardcopy version of the PO to the supplier. The supplier will confirm receipt of the PO and provide an estimated delivery date for the requested goods or services. When the goods or services arrive, check that they match what was ordered and submit payment according to the agreed-upon price. Following the purchase order process will ensure that you have a complete and accurate record of all purchases made by your purchasing department. This information can be invaluable in helping your company better manage suppliers, negotiate more favorable contracts and stay compliant with relevant laws and regulations. 10 Tips for Using Purchase Orders Effectively Planning: When issuing a purchase order, it's important to allow enough time for the supplier to fulfill the order and anticipate any delivery delays. Pay attention to detail: Make sure that all information on the PO is accurate and up-to-date, so there are no misunderstandings between you and your supplier. This includes pricing, payment terms, shipping details, product specifications, etc.  Stay organized: Keep track of all POs issued by organizing them into folders or using filing software such as Excel or Quickbooks. This allows you to quickly locate a PO if necessary and also helps with budgeting and accounting tasks. It’s also easier to rely on legal protection in case of disputes if you can easily locate all relevant documents. Follow up: If there are any discrepancies with the PO, address them immediately. This will help ensure that everything is done properly and promptly.  Use the latest technology: Automation tools such as PO software can help streamline the process by automating many of the manual tasks associated with issuing purchase orders. This can save you time and money while ensuring accuracy and efficiency. Negotiate terms: Don't be afraid to negotiate payment and other conditions that may benefit both parties involved in the transaction. Establish relationships: Good relationships with suppliers are vital for ensuring future success with purchase orders. Open communication and following up on time can go a long way toward achieving your business goals. Monitor performance: Make sure your suppliers are fulfilling their obligations according to the terms of the PO. Doing so will help you identify any areas in which improvement is needed or where alternative suppliers may be necessary. Stay compliant: Staying updated on applicable laws and regulations when issuing purchase orders is essential for remaining compliant with local, state, or federal laws. Familiarize yourself with all relevant rules and make sure that all of your purchases follow those rules accordingly. Leverage data: Analyzing the data associated with your purchase orders - be they on the buyer or seller side - can help you identify opportunities for cost savings, streamline the buying process, and improve supplier relationships. Bottom Line Using POs effectively is an essential part of any successful business nowadays. Following a strict purchase order process can help your business save time and money while ensuring accuracy and efficiency.  For example, a PO system for a small business uses automation, and tracking data from your POs can also provide additional insights and help you make more informed business decisions. By following this guide, you will be well on your way to using purchase orders effectively.

It’s hard to imagine the modern world without barcodes. They are on almost every product we buy, from food to clothes to electronics. We tend to take it for granted that this technology will be there to make our lives easier.  But have you ever wondered about the history of barcode technology and barcode scanners? Have you asked yourself: When was the barcode invented, and how did it become so ubiquitous? In this article, we’ll answer those questions and take a brief look at the history of this fascinating technology. What Is a Barcode? Let’s start by explaining what a barcode is. A barcode (often spelled as two words, ‘bar code’) is a machine-readable representation of data typically used to track inventory or products. Barcodes can be found on almost any consumer product today, from food items in the grocery store to books at the library.  Barcodes work by encoding data in a series of parallel lines of varying widths. The widths of the lines are read by a scanner, which converts them into digital data that a computer can process. Before we delve deeper into the barcode history, here are the most common types:  The Universal Product Code (UPC), used on almost all retail products in the United States The European Article Number (EAN), mainly used in Europe International Standard Book Number (ISBN) A Barcode Scanner A barcode scanner employs data capture technology to read barcodes on products in retail stores, identification cards, and postal mail. A typical scanner consists of three main components: an optical reader, a decoder, and a cable connecting the two.  The optical reader is the part of the product code scanner that "reads" the lines in a barcode by shining a light on it and converting the reflected light into an electrical signal. This signal is then sent to the decoder, which converts it into digital data that a computer can read. The First Barcode We’ll take you back to 1948, the year when the first barcode was invented and created by Bernard Silver, a graduate student at Drexel Institute of Technology in Philadelphia, and Norman Woodland, an inventor and a Drexel alumnus.  The two men came up with the idea while working on a project for a local supermarket chain, whose owner asked the institute for help in developing a way to read product information automatically during checkout. The barcode history timeline continues with Silver and Woodland realizing that a system of lines and spaces could be used to encode information that a machine could read. They got the idea from Morse code, which uses a series of dots and dashes to represent letters and numbers. The initial barcode was designed as a “bull’s eye” made up of a series of concentric circles. Silver and Woodland filed a patent for their invention in October 1949, but it was in 1952 that it was patented. However, a powerful 500-watt incandescent bulb they had built into it and a bulky oscilloscope didn’t make the system practical enough for commercial use.  Collins at Sylvania and KarTrak System The next figure in the turbulent history of barcodes was David Jarett Collins, an engineer at Sylvania Electric Products Inc. He was among the first to realize a need for an automated system to track and identify railroad cars. Working on a problem, he developed a KarTrak ACI (Automatic Car Identification) system in the 1960s.  The system used a pattern of blue and orange reflective stripes applied to the sides of railroad cars. A photoelectric sensor was used to read the stripes and could automatically identify a particular car as it went by.  Collins’s system is yet another piece of the puzzle that answers the question, “When was the barcode invented?” It was a much more efficient and upgraded version of the original Woodland-Silver barcode.  The new method soon became widely accepted and was set as the US standard in 1968. However, it was abandoned in the late 1970s due to technical difficulties, high costs, and poor read accuracy. A Gamechanger - The Introduction of Lasers Collins formed the Computer Identics Corporation in search of a new market for his barcode technology. This time he turned to helium-neon lasers, which were invented in 1960 by Theodore Maiman.  Lasers are, obviously, more precise than the 500-watt incandescent bulbs Silver and Woodland were using and can be focused into a very fine beam of light. This made them ideal for reading barcodes. Much before the first barcode scanner was invented, Collins incorporated a mirror that enabled the code to be reached from multiple angles, making things much easier and more reliable.  Collins and his Computer Identics Corporation installed the new barcode scanning system at a General Motors factory in Flint, Michigan, in 1969 to monitor the production of car axles. This marked the start of barcodes’ commercial journey. UPC Is Born After the successful installation at General Motors, the next step was to develop a system to be used on all products in a store. In 1966, the National Association of Food Chains (NAFC) formed a committee to develop such a system. RCA Corporation was among the committee’s members, and as it purchased the rights to the Woodland-Silver patent, it became one of the main players in the history of the barcode. However, the winner of the unique technology race was IBM, with its linear UPC (universal product code) system, which was ultimately selected as the NAFC standard instead of RCA’s bullseye code. The UPC was first scanned commercially on June 26, 1974, on packages of Wrigley’s chewing gum at a supermarket in Troy, Ohio. The barcode had finally arrived as the standard for product identification and tracking.  The UPC code consists of 12 digits, with the first six digits identifying the manufacturer, the next five identifying the product, and the last check digit used to verify that the barcode has been read correctly. The Usage of Barcodes Today Since the barcode invention and commercial deployment, retail has never been the same. Barcodes have become an integral part of our lives and are used in various ways.  We use them to track inventory, for security purposes, in libraries, print labels, and get information about a product. In addition, barcodes are utilized in many other industries, such as health care, manufacturing, and transportation. With the development of POS systems (point of sale), barcodes have become even more important, as they are used to price and track products at the time of purchase. In libraries, books’ ISBNs (international standard book numbers) are now barcodes used to keep track of inventory. Knowing barcodes’ origin, one could barely imagine their usage in hospitals. Yet barcodes are now printed on patients’ wristbands to help reduce medication errors. Barcoded tickets are also widely used at airports and concert venues to help keep track of people and prevent counterfeiting.  Indeed, barcodes have come a long way since their humble beginnings and continue evolving as our needs change. The Introduction of QR Codes In the 1990s, barcodes took another leap forward with the introduction of QR codes (also known as matrix-based 2D codes). QR stands for “quick response,” and these two-dimensional barcodes can store more information than traditional barcodes.  They contain the finder, alignment, and timing patterns that serve to determine the code’s orientation, distortion, and coordination.  When was the matrix barcode invented, then? The QR code history started with the Japanese corporation Denso Wave in 1994 when they were developed to track vehicles during the car manufacturing process at Toyota. In the beginning, they were simple 2D codes, but they continued to develop until the Japanese Industrial Standards (JIS) registered QR codes in 1999.  Later, new forms of the code were developed: In 2004, the world welcomed the first micro QR code that could be printed in a small space. Four years later, the iQR code enabled rectangular code modules and boasted 80% higher data capacity. Finally, FrameQR was developed in 2014 and brought a “canvas area” to the code. This allowed companies to add branding and design elements to their codes more freely. Thanks to those who invented the barcode, we can now use QR technology to store website URLs, contact information, and small amounts of text. It can also be used to trigger actions, such as opening a URL in your browser or adding a contact to your address book.  The Future of Barcodes As barcodes continue to evolve, we can expect to see even more uses for them in our everyday lives. Now that we know the answer to the “How long have barcodes been around?” question, we can only imagine what the future holds for this technology.  With the advent of cloud-based inventory management software, barcodes are becoming even more important for managing products and tracking inventory in real time, no matter where you are.  We are also likely to see more uses for QR codes as they become more widely adopted. So, whether you’re using a barcode to keep track of your inventory or scanning a QR code to get information about a product, there's no doubt that these little symbols are here to stay. Final Thoughts A combination of barcodes and barcode scanners is critical to managing inventory for businesses of all sizes, especially in the grocery industry. With a long history that dates back to 1948, barcodes have come a long way, and they continue to evolve as our needs change. Laser technology made it possible to read barcodes much faster, and the QR code was introduced in the 1990s to store even more information. Today, barcodes are used in many industries, such as health care, manufacturing, and transportation. We hope you won’t take them for granted the next time you see them. In this article, we explored who created the barcode and how its history brought it to its important place in business today.

Do you ever wonder how those little black-on-white lines can hold so much information? Or how do barcodes work, and why are they so important to businesses? In this article, we will explore the world of barcodes and learn how these simple markings can do so much. Stay tuned for an in-depth look at one of the essential pieces of technology in the modern world. What Is a Barcode? A barcode is a machine-readable code in the form of numbers and parallel lines printed on product packaging. Barcodes were first developed in the 1970s from an earlier idea based on Morse code. They have since become an essential tool for businesses of all sizes. Barcodes can be printed on labels or directly onto products and are read by scanners that are connected to a computer system. Barcodes are used extensively in retail and have helped streamline the checkout process. In addition, barcode technology can be used to track inventory levels and product movement throughout the supply chain. As barcodes become more ubiquitous, they are also being used in other industries, such as health care and manufacturing. How Does a Barcode Work? Barcodes are read by optical scanners that use a beam of light to scan the code. The scanner converts the light reflections into electrical impulses sent to a computer system. The computer system then decodes the impulses and translates them into the product information stored in the barcode.  What’s also important to note is that barcodes can store a large amount of information in a very small space. This means that businesses can track a variety of product data, such as price, color, and size. Types of Barcodes All barcodes can be split into two categories - linear and two-dimensional. Linear barcodes, also known as one-dimensional (1D) barcodes, are the most common type. They are composed of a series of parallel lines that represent numbers or other characters. Two-dimensional barcodes are less common but are becoming more popular due to their ability to store more information. These barcodes are composed of a series of dots or squares that can be read in two dimensions. Now, let’s take a closer look at the different barcode types. UPC The most common type of 1D barcode is the Universal Product Code (UPC). UPC barcodes are used extensively in the retail industry and can be found on nearly every product sold in a retail store.  The universal product code consists of 12 digits divided into two parts: The first six are the manufacturer’s identifier, and the last six are the product’s identifier. The UPC barcode is printed on every product sold in stores and is a vital part of the retail industry. Thanks to the UPC, retailers can efficiently track inventory and sales and ensure that customers get the right products. EAN Code The European Article Number (EAN) is another 1D barcode example used extensively in Europe. EANs are very similar to UPCs but have a few key differences.  EANs are composed of eight or 13 numbers depending on the product size. If the product is small, such as a book, it will have an 8-digit EAN. If the product is larger, such as a piece of furniture, it will have a 13-digit EAN. These numbers combine a country code, company code, and article number, while the last digit represents the check digit. EANs are often used on products sold internationally, as scanners in any country can read them. This makes them a vital part of the global supply chain. Data Matrix Code Data Matrix codes are 2D barcodes that can encode a large amount of data in a small space. They are made up of black and white squares that form a big square or rectangle and are used in industries where tracking and traceability are critical. These codes have a maximum encoding capacity of 3,116 numerical characters and 2,335 alphabetic characters. Each Data Matrix has its own perimeter finder and timing pattern, and they are made up of square or rectangular blocks of black and white cells. Data Matrix codes may store both large and small symbols. A barcode scanner can more easily read the code if there is a blank space around its perimeter. PDF417 Code PDF417 is a type of 2D barcode used to store information. The name stands for Portable Data File 417. PDF417 codes are used in various contexts, including but not limited to driver’s licenses, passports, and other identification documents.  The information stored in a PDF417 code can include text, numbers, and other data. These codes are read by scanning them with a barcode reader. The reader decodes the information, displays it on a screen, or prints it out.  PDF417 codes are also used in some financial transactions, such as mobile payments. In these cases, the code typically represents a unique identifier for the transaction. PDF417 codes have been used since the early 1990s and are now one of the most common barcode types. QR Code QR codes are becoming increasingly popular, especially as a way of sharing information or accessing content quickly and easily. But what exactly is a QR code? Simply put, a QR code is a two-dimensional barcode that can be read by a smartphone or other devices with a camera.  When scanned, the QR code will direct the device to a specific website or online content. QR codes can be used for various purposes, including sharing contact information, providing directions, or linking to a video or social media account.  Businesses have also begun using QR codes to offer customers special deals or promotions. While QR codes are most commonly used with phones, they can also be scanned with laptops and tablets. So, the next time you see a QR code, go ahead and give it a try. Benefits of Using Barcodes Barcodes have become essential to modern life, appearing on everything from groceries to library books. While they may seem like a simple way to handle inventory tracking, barcodes offer businesses various financial benefits. Here are some of the key benefits of using barcode systems: Improved accuracy: Barcodes can be read quickly and accurately, which reduces the chances of human error. This is especially important for businesses that need to track a large number of items. Reduced costs: Using barcodes can help businesses save money on labor costs associated with inventory management. Barcodes can also be used to automate the ordering process, which can lead to further cost savings. So if you’re unsure how to use a barcode system, consider hiring a professional to help get you started. Faster transactions: Barcodes can be read quickly, which helps speed up transactions. This is especially beneficial for businesses that experience high volumes of traffic, such as supermarkets and department stores. Improved customer service: Barcodes can help businesses keep track of sales data and customer purchase history. This information can be used to improve marketing efforts and customize the shopping experience for individual customers. Improved security: Barcodes can be used to track products and prevent theft. This is especially important for businesses that sell high-value items or handle sensitive information. As you can see, barcodes offer a variety of financial benefits for businesses, large and small. How Does a Barcode Scanner Work? A barcode scanner is a device that can read and interpret barcodes. It encodes the data from the barcode into a form that a computer can read. The computer then uses this data to look up information about the product, such as the price, in a database. Barcode scanners come in various shapes and sizes, but they all work using the same basic principle. So, how are barcodes read? A barcode scanner contains a light source, a photosensor, and an electronic decoder.  The light source is used to illuminate the barcode. The photosensor is used to detect the reflected light from the barcode. The electronic decoder is used to interpret the data encoded in the barcode. Barcode scanners can be handheld or fixed. Handheld barcode scanners are portable devices that can be held in one hand while scanning barcodes. Fixed barcode scanners are mounted on stands or other surfaces and are used to scan barcodes placed within the scanner’s range. Barcode scanners are commonly used in retail settings for pricing and inventory control. However, barcode scanners can also be used for other purposes, such as tracking assets or collecting data. Final Thoughts Barcodes are essential to many businesses, helping track inventory and product movement throughout the supply chain. By understanding how they work, you can ensure you’re making the most out of them. There are different barcode types, so choose the one that best suits your needs.

Inventory accounting follows and marks the changes in inventory assets. This allows businesses to track how much inventory they have, what it is worth, and when it needs to be replaced.  It helps businesses avoid overstocking or undersupplying products, which can lead to financial losses. In this article, we will guide you through the advantages of this type of accounting and show you how it can lead to a more successful business. What is Inventory Accounting? Simply put, this is the process of tracking and reporting the value of a company's inventory. The goods that make up the inventory are placed in one of three categories: raw materials, work-in-progress, and finished goods. This is important to know, as your inventory can go from one category to the next until it is sold. Keeping track of all three categories is part of good business practices as it makes it much easier to calculate your profits at the end of an accounting period. It’s a vital tool for businesses of all sizes because it provides essential information about your company's assets and can also help improve decision-making, increase efficiency, and boost profits. Inventory Accounting Terms You Need to Know Before choosing the most suitable accounting method, it would be beneficial to get acquainted with two key terms - cost of goods sold (COGS) and ending inventory (EI) Cost of goods sold (COGS) can include materials, labor, and shipping. COGS is a key figure in many financial calculations, such as gross margin and operating expenses.  There are several different methods for calculating COGS, but the most common is to use beginning inventory plus purchases minus ending inventory. This method gives the company a good idea of the actual cost of its goods and allows for more accurate financial planning. Ending inventory (EI) is the merchandise that a company has on hand at the end of an accounting period. The ending inventory is essential for keeping a steady inventory balance because it represents the merchandise that will be used to generate sales in the next accounting period.  Accordingly, companies must carefully manage their ending inventory levels to ensure they have enough merchandise to meet customer demand.  Different Methods of Accounting for Inventory Management  There are several different inventory valuation methods used by businesses to determine the cost of their inventory. The most common ones are the first-in, first-out (FIFO) method and the last-in, first-out (LIFO) method.  The FIFO method assumes that the first items purchased are also the first items sold, while with LIFO, the assumption is that the last items purchased will get sold first.  Other less common inventory accounting methods include the weighted average and specific identification methods.  The weighted average method calculates the cost of inventory based on the average price of all units in stock, while the specific identification method tracks each item individually from the moment it enters the supply to when it is sold on.  We’ll get into each of these methods more to bring you the complete picture of their advantages and disadvantages. But no matter which inventory accounting policy is used, accurate inventory records are essential for proper financial reporting.  The Right Method for Your Business The choice of valuation method can have a significant impact on a company's bottom line.  As a result, accountants and financial managers must understand each method's pros and cons before choosing one for reporting purposes. FIFO Method The FIFO accounting method, or "first in, first out," is a method used to calculate the cost of the inventory on hand. The assumption with FIFO is that the first items acquired will be removed from the stock before the others. It is most often used in manufacturing and retail environments where products have a shelf life or expiration date. When using FIFO, the first inventory purchases are assumed to be sold first and are therefore charged to the cost of goods sold.  This method can help to prevent spoilage since older items are more likely to go bad before newer items.  While the FIFO inventory accounting method is not always the most efficient way to determine the cumulative inventory value, it can be a helpful tool for keeping track of stock levels and ensuring that materials are used in a timely manner.  It can help businesses avoid obsolescence, as older items are less likely to be sold if they can’t compete with newer items in stock. For example, stocking older iPhones isn’t likely to be profitable as the new model will be much more desirable than its previous generation.  The FIFO method is all about efficiency - by ensuring that the items sitting around the longest are used first, we can avoid waste and ensure everyone gets what they need.  LIFO Method LIFO stands for "last in, first out." It's a method of accounting for inventory management in which the most recent products added to inventory are the first ones sold.  The main advantage of LIFO is that it closely resembles the real-world flow of inventory, which can give business owners a more accurate picture of their actual profits and losses. LIFO can help businesses maximize their profits by selling goods that are likely in high demand. In some cases, LIFO can also help to improve customer service levels by ensuring that the most recently received items are the ones that are shipped out first.  This method can also have some disadvantages, however. For example, if prices rise, businesses using LIFO will report higher costs of goods sold and lower profits than those using other methods. As a result, LIFO is not always the best choice for businesses. Also, LIFO inventory accounting can lead to difficulties in managing inventory levels, as businesses may find themselves with a surplus of older items that are no longer in demand.  Weighted Average Method The weighted average accounting method uses the average cost of a company's goods sold during a period to determine the value of its ending inventory.  The weighted average cost is calculated by taking the total cost of goods available for sale and dividing it by the total number of units available for sale.  This method is a lot simpler than both FIFO and LIFO methods. It doesn’t offer the same level of accuracy as those two, but it does represent an efficient way to calculate your overall profit over a certain fiscal period.  Specific Identification Method This method is best used when accounting for stock comprising a small number of high-priced items like cars, machines, or jewelry.  That’s because this method assigns a specific cost to each unit of inventory rather than averaging the cost across all of them. The process is generally done by tracking inventory from the time it is purchased until the time it is sold, which requires additional resources, and, therefore, isn’t for businesses with a high number of different items that need to be tracked. How to Manage Your Accounting A company's inventory is one of its most important assets. It represents the raw materials, finished goods, and work in progress that a company has on hand to support its operations. As such, it is essential to have an accurate valuation of inventory in financial reporting. While many businesses choose to outsource their inventory accounting, there are several benefits to doing it in-house.  The most important benefit is that you'll have complete control over your data. This means you can customize your reports to fit your specific needs and ensure that the information is always accurate.  With good inventory management software and POS system providers that permit third-party interfacing with accounting software, you will be able to track inventory items as they move through the system. If you can find affordable accounting software, you'll also save money by avoiding the fees associated with outsourcing. Ultimately, accounting inventory by yourself can give your business a valuable competitive advantage. Whichever way you manage your accounting, doing so will offer several advantages. It can: Help keep track of inventory levels and value, Enable better detection of obsolete inventory, Help avoid overstocking or undersupplying products, Provide useful information for financial reporting, Help save money on inventory costs. Bottom Line In our inventory accounting guide, we showed you why this is such an essential tool for small businesses and how to use it to your advantage.  This type of accounting allows businesses to track their inventory levels, value their inventory, and make informed decisions about purchasing and selling merchandise.  It can also help businesses to manage their cash flow and provide information about when inventory levels are low and need to be replenished.  Overall, inventory accounting is a valuable tool that can help small businesses to run more effectively and efficiently.