Inventory in a company?

Question

why stock check is important in business?

Answer 1

Inventory levels are planned and maintained in relation to sales.  This is the only accurate method to reorder without error.

Constant monitoring is imperative, even if perpetual inventory records are maintained.  Shortage and theft are a fact of life and corrected inventory records must be updated.

The more often inventory counts are taken, the more easily shortages may be discovered, and the causes.

End of month, quarterly, and year end profits are directly affected by inventory count.

An inaccurate inventory, showing too much, results in overpaying taxes, inadequate levels and reorders.  An inaccurate inventory showing too little, results in distorted profit showing and affects reordering, resulting in excessive levels.

Accuracy is imperative.  An inaccurate count is worthless and expensive.

One may already have an inaccurate inventory count, why take another?