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

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Stock Company Management is the management of the goods that your business is planning to sell. It includes purchasing, storing and tracking inventory and recording changes. It could also include predicting the need, reducing costs, and ensuring that there is enough of each product in the storehouse to meet sales forecasts.

The most efficient method for managing cashflow will depend on the size of your company and the type and quantity of stock you own. Small businesses keep track of their inventory by hand, using spreadsheet formulas or order points to reorder. Larger companies might use enterprise resource planning software.

Costs associated with holding stock may include costs for purchase, storage charges, labor to pack, pick and store the stock prior to when it is sold, as well as waste or spoilage. Stocktakes are a regular element of an effective inventory control system that can aid in reducing structural costs. A stocktake compares the records of stock bought and sold with the inventory of physical items on hand by identifying stolen, lost and damaged items, as well as soiled or stained which you can deduct as an expense, or offset against the value of the goods sold for accounting purposes.

The right amount of inventory can help you set profit-making prices, but excessive quantities will bind money and increase the costs of storage and disposal. Stock turnover is a crucial measure. It is the amount of times that stock is purchased and sold over a certain period. This ensures that there is always less inventory than sales and eliminates the need to store or pay for deadstock.