Companies do an inventory count to make sure their records are accurate for accounting and tax purposes. There are several options as to the timing of these counts, and each one has its unique benefits. Let’s talk about the main ones to help you decide when is a good time to do inventory.
Calendar Year-End – Your taxes are calculated based on your revenue and expenses over the course of a calendar year, so this is a practical timeframe to do your inventory in. You kill two birds with one stone by doing it at the end of the year.
Fiscal Year-End – You don’t have to go off of the government’s tax schedule. Instead, you can pick any fiscal year-end date. Just make sure you pick a good one because you will never be able to change it once it’s set.
Seasonal Basis – Who says inventory has to be done annually? Doing it on a seasonal or quarterly basis can help you keep things on track as conditions change and you adjust inventory levels to meet demand.
Month-End – If you really want to keep a close eye on things, you can do inventory at the end of every month. It helps to have automation tools like inventory management software and barcode scanners to speed up the process and avoid data entry errors.
Irregular Basis – Instead of sticking with a rigid schedule, you can simply choose to do it whenever you want. This is more flexible than the other options, and it lets you do inventory in response to changing circumstances. Just be sure you don’t forget about it.
No matter what time of year you choose to do inventory, you will benefit from using Boxstorm’s online inventory management solution to help you along. It can track items across multiple locations and in a variety of units of measure. It also has a free app for Android and iPhone devices that effectively turns your smartphone or tablet into a mobile barcode scanner. And that’s just scratching the surface of what Boxstorm has to offer. Sign up for a free account today to get started!