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Top Inventory Keeping Secrets
Every business knows the importance of a proper inventory.
Without one, a business would not have a proper tally of its
assets and properties. They would not be able to keep their
accounting books straight.
Broken and lost equipment would remain forgotten and
uncompensated for. And the business would not have assurance of
how much property they can use to forward their businesses.
Keeping inventories may take much time and effort, but every
good business owner knows it is well worth its expense.
Almost as bad as having no inventory is having wrong inventory.
If the people in charge of keeping a company's inventory do not
do their job well, the business in question stands to make
decisions based on wrong data.
The company may have trouble accounting and keeping with the law
too. Only when a proper inventory system is implemented can the
business hope not to lose time and effort maintaining an
accurate and dependable inventory.
You can avoid these problems with inventories if with the help
of some simple tips. Inventory keeping does not have to be a
back-breaking, menial job that is, more often than not, flawed.
They can actually be a streamlined, organized, and beneficial
activity for any company.
Inventory Keeping Tips
1. Keep Every Document That Lands in Your Hands
This cannot be stressed enough. You must keep every receipt,
every document, and every transaction evidence you can get your
hands on. If the transaction does not give you a receipt, you
must ask for one.
Remember that every business should have receipts and cash
disbursal sheets that will help you keep track of every spending
and every earning. This will help you identify your possessions
by purchase date and by supplier, and will make inventory
keeping easier to manage
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and more comprehensive.
For purchases or expenses that do not issue receipts, you may at
least jot down on a notebook details regarding the items bought.
You must organize these documents according to relevant
categories. Store them in a safe area that allows for easy
retrieval and bookkeeping.
2. Mark Them
Just as ranchers brand their cows, so can you brand your
equipment as a mark of ownership. But, of course, you do not
have to use searing iron to do so, a sticker or marker will do.
The brand should show who owns the item, and the control numbers
to identify the item in the inventory.
This activity helps deter thieves from pilfering equipment from
your business. Your brand has to be permanent, though, to act as
a deterrent. This activity also helps you find out which
equipment have already been accounted for.
3. Keep your inventory up-to-date. Some people content
themselves with doing one high-visibility inventory and forget
that they did the activity at all. Inventory keeping is a
constant process. You must check the inventory and actual item
existence to see if there are any missing, or damaged items that
are unaccounted for.
This will verify the accuracy of your inventory. You may have to
update you inventory and the branding of the items in your
business.
4. Put Someone in Charge
Someone has to oversee the inventory keeping activities of a
company. Do not scrimp on budget and fail to allocate resources
for the activities. Remember that they are an important part of
the business organization.
About the author:
James Monahan is the owner and Senior Editor of InventoryHq.com and writes
expert articles about inventory.
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