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Inventory is an idle stock of physical goods that contain economic value, and are held in various forms by an organization in its custody awaiting packing, processing, transformation, use or sale in a future point of time.
Inventory management is a very important function that determines the health of the supply chain as well as the impacts the financial health of the balance sheet.
A stocktake is a count of the business inventory on hand, typically done at the end of the financial year, though some businesses may do it more regularly.
Having an accurate idea of the number of stock items your business owns allows your accountant to reconcile physical stock to the inventory records, highlight variances, and identify issues with stock management and control.
With accurate knowledge about stock movements and stock on hand, you can make informed decisions about theft, slow-moving items, damaged stock, technology obsolescence and warehouse processes.