Does My Company Need Inventory Management?
Inventory management is an interesting topic because companies use it every day as they sell products and create new orders. However, inventories must be done for tax purposes every year, and those inventories will only confirm the conclusions of the company if they are not handled by an outside entity. Consider what inventory management will do for your business.
It Allows For Checks and Balances
When your company is diligently taking stock of what comes in and what goes out, you’re going to have a very accurate record of what your inventory currently is. However, you cannot always trust that items have not fallen through the cracks.
When an outside firm handles your inventory for you, they are checking your inventory without any prior knowledge of your stock at all. This helps them to do the inventory without bias and report to you what your inventory actually looks like.
Now You Can Compare Notes
When you have an inventory report from an outside agency, you will be able to take what they have presented to you and compare it with your own records. Any discrepancies can be accounted for or investigated. Moreover, you can see if there are holes in your protocols that allowed for the inventories to be disparate. A change in inventory or stocking procedures may be necessary, and this will be revealed during an independent count.
You Can Have an Accurate Record for Tax Filing
When your business files its tax returns, your inventory records must be correct or you will be in for an uncomfortable audit. Ensuring that you have a proper inventory will allow your company to save money on tax liability, keep track of how items are falling through the cracks during the year, and help you to save money in the future with improved protocols.
It is wise to hire an inventory management firm, like Bonded Service Warehouse, to get you started on the path to complete transparency when it comes to your inventory levels and tax filings. You will save money in the long term, and you will be able to file proper documents with the government in the short term.