Inventory Record Keeping: It's Good Business
Proper inventory record keeping is a necessary tool in helping a jewelry business to be successful.
Taking the time to establish and maintain accurate and up-to-date inventory records will save you time and money in the event of an insurance claim. If you have a loss, your inventory records will prove what inventory has been lost and its value so that your claim may be settled quickly.
Recovering insured losses isn’t the only reason to establish proper inventory records. They are also useful in planning. They can help you determine when to reorder merchandise and can help you know what’s selling and what’s not. Your records can also alert you to missing items and errors in entry, and they help deter internal theft.
Here is a checklist of reminders regarding your inventory record keeping efforts:
- My inventory system contains a detailed listing of all owned stock for sale, customers’ goods, memorandum goods, and merchandise temporarily away from my store.
- I keep purchase invoices, sales receipts, and annual physical inventory list of all my stock.
- I maintain a perpetual inventory system or an equivalent system.
- I update my records regularly.
- I am exact and accurate in my record keeping.
- I perform a detailed and itemized listing of my physical inventory at least once a year. Inventory or jewelry lines carried by sales people are included in the annual physical inventory.
- My accountant has reviewed my inventory system.
- I store a copy of my annual physical inventory records off premises.
- For my computer-based perpetual inventory system, I keep my records separate from my merchandise.
- I store all of my records, including purchase invoices and sales receipts, in a fireproof container or safe that does not hold merchandise.