What is the difference between provision and reserve

[Chibson]

In my business, I use to set aside some part of inventory and keep as reserves. I sell honey and I always keep two bottles of honey per batch so I can sell in case there is a time when I can't get supply of honey.

That is actually a very good strategy. Some business people also do that but when your sell perishable products, it will be a very bad decision.

 

[Etini Willie]

That's the downside of having to sell perishable goods. With perishable goods you just have to buy the quantity you can sell off. Reserves in perishable goods can be kept as cash.

That is actually a very good strategy. Some business people also do that but when your sell perishable products, it will be a very bad decision.

 

[Reedex]

There are major difference between provisions and reserve and it's a very good way to make decent income.

 

[Yohanna]

The major difference between provision and reserve is that provision is much more lucrative.

 

[Reedex]

The major difference between provision and reserve is that provision is much more lucrative.

I would agree to your statement because provision store is way more productive and profitable.

 

[hastral45]

Reserve could also mean what has been kept aside for future use. It could be for difficult situations or to sort out certain issues, it all depends. Provisions could be what is needed to be used at the moment.

To layman definition, reserves are those assets which could mean capital, goods, services etc that are kept aside for the purpose of future use. While provisions are facility provided.

 

[uptrendfinancialsignal]

To layman definition, reserves are those assets which could mean capital, goods, services etc that are kept aside for the purpose of future use. While provisions are facility provided.

Both reserves and provision are crucial and and needed for by every individual as well.

 

[Shavkat]

They do have differences. They do work hand-in-hand in businesses. Although they can be controlled and monitored at the same time. It is just how the top management will do these things.