Recently Sponsel CPA Group has shared advice with you about checking in on the financial health of your organization and your progress towards 2015 goals now that we’re past the mid-point of the year.
Another area to focus available resources now is on inventory control. Many organizations that hold inventory dread the year-end physical counting of inventory – typically performed as close to December 31st as possible.
The year-end inventory observation is important to provide a clear picture of the assets on hand for your year-end financial statements. But it is often accompanied by a lot of stress. You can work to reduce the strain by planning ahead now.
If your company does not perform smaller counts of inventory throughout the year, referred to as “cycle counts,” you should consider doing so. Taking small cycle counts throughout the year helps increase the accuracy and reduce the time spent on year-end physical inventory observation.
If your company already performs some cycle counts, this is a great time to check your schedule of counts and make any adjustments necessary. If you’ve bumped into some problematic counts so far this year, schedule those areas again before year-end. Ideally, your cycle count schedule should set you to count everything in inventory throughout the course of the year.
Implementing a successful cycle count system now can save your organization time and money at the end of the year – but you can’t wait until December 31st to make these changes. If you have questions about your inventory controls, please give us a call!
If you’d like to know more about setting up a system of cycle counting, contact Mike Bedel at (317) 613-7852 or email [email protected].