Maintaining accurate inventory records is crucial for several reasons:
Financial Accuracy: Inventory records play a vital role in financial accounting and reporting. They help determine the cost of goods sold (COGS) and assess the value of current assets on the balance sheet. Operational Efficiency: Efficient inventory management ensures that production processes run smoothly without interruptions due to stock shortages. Customer Satisfaction: By keeping track of inventory levels, businesses can meet customer demands promptly, leading to higher customer satisfaction and loyalty. Forecasting and Planning: Accurate records aid in demand forecasting and strategic planning, helping businesses anticipate future inventory needs and avoid overstocking or understocking.