Taking inventory

Taking inventory is the process of counting the amount of inventory owned by a business. Taking inventory is needed to ensure that a firm’s inventory records match the physical count, to support materials management and to ensure that a correct ending inventory balance is reported on its balance sheet. Taking inventory can require that a company cease its normal warehousing and production activities in order to ensure an accurate count, so the count is commonly conducted after hours or on a weekend. This is an especially important activity when a business has a large investment in inventory, such as a retailer, distributor, or manufacturer.

Related Courses

Accounting for Inventory 
Inventory Management