Importance of Inventory
As a small business owner, the most important tool that you can use to keep track of your business assets and property is inventory. In the absence of a proper inventory, you would have no record of equipment that is lost or broken. The data required for the determination of business strategies would also remain incomplete and inaccurate.
Precision and accuracy are of paramount importance in maintaining an inventory. Any negligence could result in wrong decisions and a loss to your business. To keep the inventory accurate, you need to implement a proper inventory system. I know, I know…taking inventory seems tedious and boring, and you have better things to do! But, simple and organized inventory keeping is not very hard.
All documents should be properly filed — In order to keep track of the earnings and expenditure of your business, receipts of transactions and cash disbursal sheets are very important. All transactions should be complete with valid receipts. The receipts should be filed methodically, to provide reliable evidence of transactions. The receipts help to access comprehensive details about assets, with recorded purchase dates and names of the suppliers.
Label equipment for identification- Label all the equipment, using a brand or sign that is unique to your organization. Number each piece for identification, so that repetition can be avoided in recording the details in the inventory.
Update the inventory regularly- Once a proper inventory is prepared, it should be updated regularly or else the data provided would be wrong if new equipment and damages are not accurately accounted for.
Appoint someone in charge of maintaining the inventory- you should ideally appoint someone to take responsibility for maintaining the inventory.
By keeping good records where your inventory is concerned, you can reduce waste and save lots of money for your business.