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Keeping track of inventory

As a business owner you are probably already ware of the fact that one of your most important assets for your business is your companies inventory. But something else that you need to be aware of is that if you fail to keep track of your inventory you are actually inviting your business to fail, that is how important your inventory is to your business. So you are probably already aware of the fact that you are going to need to track your inventory or it could end up disappearing on you. But there are other reasons that you need to keep track of your inventory. Some of the most important reasons besides theft in keeping track of your inventory is seeing what you have in stock, what is on order, what needs to be ordered, what items sell quickly, what items need more promotion and what items you need to get rid of. But the good thing about keeping track of your inventory is that there are numerous ways you can do it, all you need to do is design your own system that works for you or ask your accountant what would work best for your company.

Here are some ways that you can keep track of your inventory.

Number one:
One way to keep track of your companies inventory is called the Tag System, this is actually a really simple manually system that is very easy to understand not to mention it is very easy to use. In order to use this system you are going to have to use a record book to keep track of your inventory. Basically what you want to do is write down all of your inventory in the record book, be sure to include all the inventory that you have on hand. Then you are going to want to put a special tag on each piece of your merchandise and each tag should have a unique number. Once you sell the merchandise you need to remove the tag and place it next to the entry in the record book. And then once a month you go through and check your merchandise and make sure that you have a tag for each piece of merchandise that you no longer have.

Number two:
Another way to keep track of your inventory is to compare your sales receipts to your delivery receipts. This process is actually really simply, but it is only effective for finding out if any of your inventory is missing because basically if you have a delivery receipt but no sales receipt then the inventory is missing.

Number three:
Barcodes are another great way to track your inventory. But the thing with barcodes is that they have to be used with a type of computer software. But one of the best things about using this method to keep track of your inventory is that it makes your inventory checks go by quickly. Basically what happens is that when you scan the barcode on the item with a scanner it will tell you how many items are left in your inventory and then you see if that matches with what you have on hand. The items are subtracted from the inventory when the barcode is scanned at the time of sale.

Number four:
Another way to keep track of your inventory is through inventory tracking software. Basically this software is designed to work with your computer system. The hardest part to most of these software packages is installing them onto your computers and getting the set up to track your inventory. But after you get everything set up you are good to go and don't have anything left to do but do inventory checks.

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