One way excess stock can be reduced is by making a markdown in the cost of goods sold section of the income statement so that less inventory needs to be recorded. This would remove some items from closing inventory and therefore reduce it. Another option is to pay attention when receiving goods so that they are recorded at an appropriate time so that they do not get lost and need to be counted as closing stock. A final way excess inventory can be removed is through returns or allowances of goods which then reduces closing inventory.