Stock Company Management involves managing the inventory of products that your business plans to sell. It involves purchasing, storing and tracking inventory and keeping track of changes. It could also include the prediction of demand and cutting costs by having the proper quantity of each product available in the warehouse to satisfy sales forecasts.
The best cash flow system will depend on the size of your company as well as the type and size of stock you have. Small businesses keep track of their inventory by hand, using spreadsheet formulas or order points to reorder. Larger businesses may employ enterprise resource planning software.
Costs for holding stock can include storage costs, labor costs to store, pick and pack the stock prior selling, and waste or spoilage. You can reduce structural costs by using a reliable stock control system, which includes regular stocktakes, so that you can track the inventory available at any time. A stocktake combines the records of inventory purchased and sold with inventory held in physical form by identifying stolen, lost and damaged items, as well as soiled or stained which you can deduct as an expense or against the cost of selling goods to make accounting sense.
Having the right amounts of stock can help you set profitable prices, however, too much inventory can tie up cash and increase storage and disposal charges. Stock turnover is an important measure. It is the number times stock is purchased and sold during a particular time. This helps ensure that there is always less inventory available than sales, thus avoiding the need to purchase and store deadstock.