Inventory Equals Cash
Your business carries inventory and the dreaded year-end is coming. That means you’ll get a call from your accountant saying, “gotta count your inventory before year-end, so I have something to send to the Tax Man.”
Ugh. It’s always such a pain. You want to get this over with so you can get back to running your business. You feel like telling him “just take the total from the inventory control system, take 5% off and send that in.”
5% is the generally accepted variance level, meaning there’s a 5% discrepancy between the inventory control system and your inventory count. 5% is not a big deal. An accounting error. But would you be happy with your cash-out being 5% out? And how often do you count your till versus how often you count your inventory?
Like most businesses, you count the till every day and your inventory once a year. You want your daily cash-out to be balanced but are okay with your annual inventory count being out 5%.
What if you saw your inventory not as inventory, but as cash? You paid for it after all. And it’s the source of revenue for your business.
No inventory, no business. So think of it as cash. Inventory = cash.
If you saw it that way, you would count your inventory more often. And you would not be happy with a 5% discrepancy.
But inventory counting is such an expensive, cumbersome process. Not anymore. We can help.
All you need to count monthly, weekly, even daily is a phone and a laptop. We can help you do counts in a fraction of the time, without shutting down for the day and are more accurate.
Start treating your inventory like cash. Your bottom line will thank you.