Types of inventories

Every entrepreneur engaged in commercial and service activities and those who account on the basis of a ledger knows perfectly well what inventory is. However, for the sake of order, let us remind you - it is a physical inventory of all tangible and financial components of the company. Thanks to it, you can determine the situation of the company's assets and at the same time meet the deadlines to which the Accounting Act obliges the entrepreneur. This document speaks of three ways of inventory, but we can distinguish different types of inventory used depending on the nature of the business, the scope of outsourced tasks and the frequency of operations. It is worth thinking over the decision regarding this choice, and it is best to put it in the hands of specialists. Professional companies will select the appropriate inventory method and carry it out effectively.

Annual inventory

This is by far the most popular type of inventory. This type of physical inventory is organized periodically, every year, and is designed to accurately calculate inventory and indicate differences with the books. It also prepares the entrepreneur to close the books. The Accounting Law says clearly, such type of inventory as annual must take place by the last day of each fiscal year. It is worth keeping an eye on the deadlines - failure to do so will result in a fine!

Continuous inventory

This method of inventory is carried out most often in large warehouses. It involves continuous, successive verification of assets and quantities. Of course, it is customary to set a deadline, but such type of inventory can last even a whole year. The idea is to efficiently and continuously calculate the state of the company's assets, but within the scope of those that are subject to records. Thanks to such inventory methods the entrepreneur has current information about the state of the company.

Ad hoc inventory

The name itself indicates - ad hoc inventory is a physical inventory carried out for the needs of the company. There are various reasons for this, and the most popular include, for example, a change in the person who is responsible for the physical inventory, but also, for example, putting the company into bankruptcy. The order to carry out an inventory then comes from the trustee, who wants to have full knowledge of the company's assets.

Cyclic inventory

It is characterized by constancy. It is repeated on a predetermined schedule. Depending on the needs of the company such periodic inventory can be held once a month, once a quarter, once a year. But in fact, this type of inventory will find justification for any, even any interval. The idea is to take an effective inventory of the company's assets.

Extraordinary inventory

This particular inventory is worth devoting a few sentences to. It is carried out only in the event of special, extraordinary circumstances. Among them, it is worth mentioning the request of external authorities, for example, the police or the prosecutor's office. Often, extraordinary inventory is also carried out after burglaries with thefts. Then, if large warehouses are in question, it is possible to get an idea of the real scale of the problem. Appropriate inventory methods will also find justification in such a special case as natural disasters or fires. Then the physical inventory covers all or part of the company's assets.

Partial inventory

Sometimes it may be the case that there is no need to carry out the entire inventory process, because doubts or some type of change affects only a specific set of physical assets. In such a situation, it is not necessary to count everything. A physical inventory can be carried out to complete, verify or update the company's assets.

Control inventory

Although this type of inventory does not appear in the Accounting Act, it is worth knowing its purpose. It is used when there are doubts or simply when an entrepreneur wants to get a full report on his business. Such an inventory is also called a series of inventory activities commissioned by external bodies, such as the police or the prosecutor's office. They are about finding out the real situation of a company that has come under the magnifying glass of such services.

Methods of taking inventory are really different. Everything, of course, depends on the type of business and the desired effect. All categories of division also contain information that some physical inventories are carried out due to statutory obligation. A professional company that has in its portfolio inventory services will carry out the entire process in the least burdensome way possible for the entrepreneur himself. We will only receive a full report with a detailed analysis, which will help optimize the company's processes in the future and avoid costly mistakes at the same time.