An inventory is a fundamental tool for managing the assets and resources of a company or individual . Its importance is significant for the accounting area and business management, since it is considered an asset.
The most common concept of inventory is that of a document that lists a business's merchandise to track sales , purchases, and detect possible losses due to theft, damage, expiration, or other reasons. However, a perpetual inventory has more functions.
This is because, depending on the type of inventory , a variety of assets can be included and accounted for, such as real estate, vehicles, computer equipment, accounts receivable, and bank investments, among others.
Therefore, its usefulness is not limited only to commercial stock management. Below, we will delve into its different applications.
Tip: If you are creating a company from number data scratch or digitizing a business that currently only has street-facing stores, keep in mind that with Tiendanube you will be able to keep track of your entire inventory , thus streamlining the operational tasks of your store.
Boost your brand by creating your own online store.
What is an inventory for?
In general terms, beyond providing an assessment of a company's assets, the information provided by an inventory is key to decision-making and strategy formulation. As the number of assets, products or resources in possession increases, their management becomes more complex, which makes control difficult.
For example, a micro-business dedicated to importing needs to know the level of stock in order to calculate sales projections and determine the right time to place new product orders.
What is the importance of an inventory system?
Other cases that illustrate the usefulness of an inventory include determining whether to speed up the collection process to increase cash flow, or whether to hire a technician to repair stored equipment.
These are just some of the scenarios in which an inventory becomes a valuable tool for companies. However, the logistical and operational work of a company does not end with the creation of the inventory; it is necessary to implement what is known as inventory management or control .
Determining the quantity and value of products in stock requires accurate formulas and calculations. This information not only makes it easier to estimate product costs, but also prevents situations of resource shortages or excesses.
Both the creation and control of inventory are fundamental aspects for correct management.
Tip: Do you have an online store created with Tiendanube and would you like to integrate an inventory management system ? Visit our App Store and find the option that best suits your brand's needs.