How A Good Stock Control System Will Help Your Business Manage Its Cash-Flow and Prepare Stock-Takes

Stock control is a significant part for smooth business as poor stock control systems make lots of businesses money-wise unsuccessful. It is the need of hour for all businesses to have a good stock control system to eradicate financial stress on the business. Poor stock control provides incorrect stock details that can lead a business to fail financially. The wrong results may be in the location, color or size or maybe something is not available at all for which you provide incorrect details that cause loss to the business. Stock piling can occur due to incorrect stock control that put unnecessary strains on your cash flow and it may result in lack of cash flow that is highly dangerous for even most profitable business. The wrong calculations can result in totally failure of even big profitable business.

A lot of stock control software is available that you can select depending upon your business requirements and suitability. A good stock control system is one that could produce a stock take at any required time; by the end of the year or at the time of interim management accounts preparation because you need to provide variations in stock on a profit and loss account.

To be informed about stock shortfalls or to identify any discrepancy in your business; regular stock control management is helpful. You get acknowledged about the sold items and guide line about the items you need to restock along with those that need price changes accordingly.

F.I.F.O, L.I.F.O, and A.V.C.O are the methods among which one you choose for your stock take calculations.

Ø  In F.I.F.O, your stock take calculation is carried out on the most recent supplier invoices.

Ø  In L.I.F.O, your stock take calculation is carried out on the oldest supplier invoices.

Ø  In A.V.C.O, weighted average price is used for stock take. This is more complicated system.

Most of the businesses use F.I.F.O for their stock takes calculations. However, some also use the other methods.

The Stock control software helps a lot in maintaining businesses stocks. Hold stock control software that suits your business which can make your business processes flawless and successful by taking our services.