Store inventory timing - when and how often to take inventory?

The term inventory, or professionally a physical inventory, defines a set of activities calculated to precisely determine the quantity and value of inventory in the store and warehouse. These values are then compared with the state of the accounting records, that is, any accounting document or contracts. Why is this done? Firstly to know exactly how many pieces of a particular product were sold, how many were written off, but most importantly, because carrying out an inventory is legally required by the Accounting Act. This document defines precisely the deadlines for carrying out the inventory. It all depends, of course, on the subject of the calculation and the entity to carry it out. Inventory in a store can be done independently. It is good to keep the proper procedures, such as appointing a coordinator or controller who will check the documentation after the inventory has already been taken. It will also be his/her responsibility to meet inventory deadlines. The approaching end of the year is the moment when many companies start preparing to conduct such an inventory. Some conducting it incompetently may do their company more harm than good. There are professional companies on the market that provide inventory services. By putting this task in the hands of professionals, we can be sure that the timing and frequency ofthe inventory will be correct, and the inventory itself will be drawn up as accurately as possible. A solid inventory of commercial goods is of great importance in the process of running a business. It allows you to check the state of the company's operations. With the appropriate response after physical inventory , losses can be prevented and the smooth operation of the company can be restored.

When can the inventory start?

Inventory can be started even three months before the end of the fiscal year. It is worth taking this information to heart, because inventory is a very tedious and time-consuming process. And the legislature provides penalties for failure to meet inventory deadlines, although it must be admitted that the date range is defined quite comfortably. This does not change the fact that it is worthwhile to prepare well for the physical inventory.

By when do you have to take inventory in a store?

As a general rule, because it follows from the provisions of the Accounting Law, the inventory date is the last day of each fiscal year. What may not be so obvious to everyone, the fiscal year sometimes does not coincide with the dates of the calendar year. However, this is rare. So by when to take inventory? Most often by the last day of the year. In special cases this date is moved, for example, due to the very nature of the fiscal or otherwise fiscal year. This refers to the twelve consecutive months of the tax year. By when to conduct the annual inventory? The Accounting Law allows the completion of such an inventory even fifteen days after the end of the year.

How often should an inventory be taken?

Rather, it is not necessary to do it more often than once a year, unless the nature of the business forces a differentfrequency of inventory. Sometimes a kind of emergency physical inventory of the company's assets is also used when irregularities are suspected. Then, however, it is not related to a statutory obligation and the entrepreneur is also not affected by legal inventory deadlines. He usually takes such an inventory to establish the facts for his own knowledge.