Stock Company Management – Managing the Inventory of Goods Your Business Plans to Sell

Stock Company Management involves managing the inventory of goods your business plans to sell. Stock Company Management involves keeping track of, storing and buying inventory. It can also involve predicting demand and reducing costs by having the appropriate quantity of each product in the warehouse to satisfy sales forecasts.

The best method to manage cashflow will depend on the size of your company as well as the type and size of stock you hold. Small businesses usually keep records by hand using spreadsheet formulas and Reorder points, whereas larger businesses may employ more sophisticated enterprise resource planning (ERP) software.

Stock holding costs can see include storage fees, labour charges to pick, store and pack the stock before selling, and waste or spoilage. You can reduce structural costs by implementing a good inventory control system, which includes regular stocktakes so that you are aware of your inventory at any given time. A stocktake compares the records of inventory purchased and sold with the physical inventory in your hand and identifies stolen, lost damaged or soiled items that you can claim as an expense or against the cost of the items sold to make accounting sense.

The right amount of inventory can help you establish profitable prices, however, too much can bind cash and increase the costs of storage and disposal. One of the most important measures is stock turnover which is the amount of times stock is bought and sold in a particular time. This ensures that there is always less stock on hand than sales, which eliminates the need to purchase and store deadstock.

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