Inventory counting service
- July 4, 2020
- Posted by: Thu Phuong
- Categories:
INVENTORY CHECK SERVICES
What is inventory?
Inventory inventory is a regular activity performed by businesses to inventory goods in the warehouse to grasp the difference between the number on the books and the actual quantity. Normally, inventory checks are carried out weekly, monthly, quarterly or annually depending on the size and quantity of goods of that business. Inventory counting is usually assigned to warehouse staff, but business owners can also delegate authority to other employees or hire inventory counting service of an Auditing Company that has inventory experience to perform this inventory work.
Why do businesses have to inventory goods - warehouses - assets?
To finalize the inventory of raw materials, goods, and assets at the time of inventory and product cost calculation.
Understand the current state of the company's resources at the end of the accounting period.
When buying, selling, merging or splitting companies.
When there is a transfer of warehouse and accounting personnel.
When there is a special administrative request from the Board of Directors.
Check the quantity of goods in stock
To help you better understand the service Inventory inventory, AACS Auditing Company provides some additional information about this inventory service:
Inventory counting process
The inventory counting process includes 3 steps
Step 1: Prepare inventory
In this preparation step, businesses need to take the following steps:
Review all items, especially items: close to date, damaged, defective... then liquidate or destroy so that the inventory can take place smoothly and quickly.
To avoid missing goods as well as to easily count inventory, it is necessary to delineate the inventory area depending on the size of the business.
Check the quantity of goods.
If inventory counting activities will affect delivery time or import goods from partners, businesses need to notify them so as not to lose their reputation.
Step 2: Conduct an inventory count
Usually the accountant, store owner or an outside corporate partner such as an auditor is the one responsible for inventory to ensure inventory results are accurate and objective. The inventory should pay attention to the following issues:
Minutes must be used Inventory inventory as bases. From inventory management software, or from daily inventory reports and warehouse cards to get a list of goods for easier inventory.
Check and compare data after inventory:
If all the data match the report, that is what every business wants. But in case there is a discrepancy, the person responsible for inventory must explain this issue. This discrepancy can be caused by many reasons such as: incorrect daily reports, sales without scanning barcodes or recording books, due to loss of goods, due to loss when moving locations...
Step 3: Statistics and summary of data after inventory counting
After taking inventory, the next step is to compare the actual data with the data on the books and adjust it according to the actual number.
Here are some things to note to keep inventory counting activities going smoothly:
Inventory should take place periodically and have a plan for everything. It is necessary to compare the inventory with books or warehouse management software.
Goods in the warehouse need to be arranged scientifically and reasonably, with warehouse tags or labels. This both makes warehouse management easy and creates favorable conditions for quick and accurate inventory counting.
There should be documents for relevant people to confirm during the inventory process. This is the basis for assigning responsibility if unexpected circumstances occur.
Some notes to keep inventory counting going smoothly:
Inventory should take place periodically and have a plan for everything. It is necessary to compare the inventory with books or warehouse management software.
Goods in the warehouse need to be arranged scientifically and reasonably, with warehouse tags or labels. This both makes warehouse management easy and creates favorable conditions for quick and accurate inventory counting.
There should be documents for relevant people to confirm during the inventory process. This is the basis for assigning responsibility if unexpected circumstances occur.
Correct compliance with the steps in inventory process This standard will help this process achieve the best results. However, depending on each business, there are other appropriate adjustments.
How to control inventory
Way warehouse management Simple, avoid loss
Arrange the warehouse neatly. The first condition for easier warehouse management is to always keep the warehouse space clean and tidy. …
Labeling of goods. …
Use inventory cards. …
Check inventory regularly. …
Restrict employee access to the warehouse. …
Use specialized software to manage inventory
Design a walkway between warehouse shelves to store goods
Inventory counting methods
Regular declaration method
Monitor regularly, continuously and systematically
Reflects the situation of import - export and inventory of goods
The value of exported goods can be calculated at any time
Value of inventory at the end of the period = value of inventory at the beginning of the period + value of goods imported during the period - value of goods delivered during the period.
Applicable subjects
Production units such as industry, construction, installation, etc.
Commercial units dealing in high-value items such as machinery, equipment, etc.
Periodic declaration method
Reflects inventory at the beginning and end of the period, does not reflect regularly, continuously and does not reflect each batch of goods exported and imported during the period.
The value of goods exported during the period can only be calculated at the end of the period.
Value of exported goods = value of inventory at the beginning of the period + total value of goods imported during the period - value of inventory at the end of the period
Applicable subjects
Units that trade in low-value, large quantity, many types, specifications, and designs
Units produce only one type of product or commodity.
Accounting work is concentrated at the end of the period
Irregular inspection makes it impossible to firmly grasp the situation of export and import of warehouses, which will limit the warehouse accounting process
It is difficult to detect errors, and it is even more difficult to determine the cause of these errors
Process of inventorying assets and inventory
Sequence asset inventory procedures is carried out in a number of steps as follows.
Step 1: Establish a Council for inventory and asset inventory...
Step 2: Conduct inventory inventory at affiliated units. …
Step 3: Summarize inventory data. …
Step 4: Process data, prepare a Report on inventory results...
Step 5: Report inventory results
The cost of inventory counting services usually depends on the following factors if a business outsources to perform inventory counting services:
- Inventory location.
- Type of assets and goods to be inventoried, packaging specifications and density of goods in each warehouse.
- Customer specific inventory requirements
- The number of personnel in each warehouse needs to be inventoried.
Please contact AACS immediately if your business needs to rent inventory counting service through the following information:
AACS AUDITING COMPANY LIMITED
Phone: 028 66 500 381 -0908 688 550
Email: info@aacs.com.vn