There are many reasons why you need to take a physical inventory at the end of every month.
The first reason is that it gives you an accurate account of your stocks and what you have on hand.
This allows you to buy more supplies before they run out, which will save money in the long-run.
It also lets you know what items are selling well and which ones aren’t as popular so that when it comes time for ordering new stock, you can make sure not to order too much or too little of those items.
But there’s another important reason why taking a monthly inventory is necessary: accuracy!
A physical inventory allows for mistakes like overpaying .
Or underpaying vendors to be caught right away because the inventory lists are adjusted automatically.
It also allows you to catch any mistakes or theft.
That may have occurred during the month so that they can be rectified quickly.
The security of knowing what is on hand and where it’s located is invaluable.
Not only for your business but also for your peace of mind!
That way if something goes missing, you know right away-before it causes too many problems with customers or suppliers-and take action accordingly before things get out of control.
If you do experience some kind of issue like this one day though, make sure to consult.
