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How to Make Sure Inventory is Being Accounted for Correctly

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Chances are if you have a business you have inventory. Inventory is defined as a stock of goods that a company, business or store has on hand. Inventory of your goods should be taken at regular intervals. Inventory that you have left at the end of a fiscal year is considered to be an asset to your business. Most retails stores do one every 3-6 months with a final one done at the end of their fiscal year. If your inventory is taken care of correctly then it will help reduce your costs and could even help increase profits. This is why making sure your inventory is being accounted for correctly should be a major concern for you and your business.

There are a few ways to make sure that your inventory is being accounted for correctly. Most include good record keeping or software specifically designed for inventory control. You can purchase this software from business stores or on-line. You can also purchase ledgers for correct record keeping for your business at these stores or on-line. Being thorough is one of the best ways to keep the records up to date and correct.

Thinking of your inventory as cash flow can help you better account for your inventory. If you misplace an item or just don't write some items down then you are out of money. If you follow your products both in and out of your store like you do your money then you on the right step to accounting for your inventory correctly. Have a record of any item that comes into your store. When this item is sold it should be marked as such. You should do this with all your items that you have purchased. If they are damaged or you can not sell them you should also mark that down in a ledger or on the computer software. The more thorough you are the better your bottom line at the end of the year.

Record keeping is vital to making sure your business inventory is being accounted for correctly. You will need to record what you bought and from whom. Include how many of each item you bought and the price you bought them for and even the date they were bought. This is what you are putting either on your shelves for sale or keeping in inventory to sell directly. Having a good inventory will let you deliver goods to your costumers in a timely manner. When the items sell you also need to keep a record of how many were sold and for how much. For inventory purposes this is a great way to keep everything in order. You can then compare how many you have bought to how many you have sold and you will come up with what is left in inventory.

For actual counting for your entire inventory you should do this as a two or more person job. Each person takes a turn counting the items and then you verify with each other. If the numbers are off you should both count the items again. Then you compare that data with what you have on file. In a perfect scenario everything should match up, your items left with how many you actually purchased and what you have recorded as being bought buy another consumer. There are shoplifters though so this can throw off your inventory a little. Paying attention to what is left in stock and what was bought against your actual purchase is a great way to keep your inventory accurate. Most companies do a physical inventory at least once a year.

Keeping your inventory up to date and correctly may take time but it is a great benefit to your business. Keeping the correct inventory can help you track what is or isn't selling. Having the correct inventory on hand will help you order better reducing your assets at the end of the year. If you keep a really good eye on your inventory you will also be able to tell when you have problems with shoplifters. Accounting for your inventory is a very smart move in your business.

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