What stock control system is currently in use?

The data is vital to keep the purchasing plans in line with client preferences. It is crucial that businesses clarify exactly what they want from the stock control system before it is deployed. Retail firms need good stock control to immediately highlight the turnover of corresponding items.

Taking stock of the goods one has will help to keep proper books of account. You would know the cash flow of the business too.

Stock control or inventory control must be able to provide information to the purchasing department of goods, when to make purchases, so that there will be no shortage of stock or excessive stockpiling which will incur costs. In accounting, several inventory recording systems are known, such as perpetual, average, Lifo, and Fifo. The use of this system must be consistent, even if it is forced to be changed, it must be disclosed in the financial statements because it will affect the cost of goods.