1.What is the Importance of Inventory reconciliation?
Inventory reconciliation management is the most critical attribute for any business. Inventory reconciliation is the procedure of defining the size and placement of stocked goods and toput reorder reminder for inventory management. Poor inventory reconciliation management mightseverely hurt your business processing and entire efforts of enterprise might prove futile in the absence of efficient and accurate inventory reconciliation.
Inventory reconciliation is one of the most tangible aspects for all size of businesses.
2.What is Inventory reconciliation?
Inventory reconciliation is a procedure where a company balances its physical inventory with the figures in its accounting books. Two types of systems are available for reconcilinginventory. Companies can moreover use a periodic or perpetual inventory system to conduct thisactivity. Like the names imply, a periodic inventory system necessitatesinventoryreconciliation at several different times a year, such as each quarter; the perpetual techniquedoes not have this requirement as an annual inventory is adequate. Under each system, a physical count of inventory is necessary to compare definite items to the accounting reports soaccountants can make modifications as necessary.