This method relies on a physical count of all merchandise available for sale periodically with inventory records adjusted to reflect the actual counts. Inventory records should include the name, description, amount, and cost of merchandise in stock and on order. Also needed is supplier information, the dates items were ordered and received, and the name of the person who placed the order. For periodic inventory systems, the records should also include the date of the last physical inventory count and the names of the persons who conducted the inventory. As noted earlier, there is a growing trend to use computerized inventory systems.
Many software programs exist which are designed for specific businesses.
You should make a complete study of available programs and check with individuals using the systems before making a decision to purchase a standard software inventory program or to have a custom program designed. Understanding that inventory can be a liability rather than an asset and knowing how to plan and control your inventory are both crucial to your profit picture. The relationship of inventory to profit and loss will only be visible with an accurate recordskeeping system.