Inventory Counting Services
Inventory plays a crucial role as a substantial component of assets in both trading and manufacturing businesses, often comprising a significant portion of the balance sheet. Consequently, it is essential to exert proper control over inventory by ensuring accurate record-keeping that aligns with the actual physical stock quantities. Despite its importance, maintaining precise inventory records reconciled with physical quantities poses a persistent challenge for many Small and Medium-Sized Businesses. It's worth noting that maintaining appropriate inventory records not only mitigates this challenge but also leads to time and cost savings, ultimately contributing to more effective working capital management.
We offer a range of services related to inventory/stock counting and reconciliation. Further details for each service are outlined below:
1. Inventory Counting Services
This entails the physical counting of inventory items within a company's store or warehouse. For numerous small and medium-sized businesses, conducting regular inventory counts and physical verifications isn't a standard practice, often due to limited human resources for such one-time tasks. As a result, many companies opt to outsource this activity to specialized inventory counting firms. In certain situations, company management may seek accurate information about the actual quantities of inventory in stores, warehouses, or supermarkets. Our expertise allows us to support management in this regard, offering economical inventory counting services to meet their specific needs.
2. Inventory Verification Services
Inventory verification, also known as physical stock verification, is a procedure that aligns a company's stock records with the physical inventory in its store. This involves counting the stock present in the store, comparing it with the records in the system, and documenting any discrepancies. The reasons for these disparities are analyzed, and a report is presented to the management along with the identified stock discrepancies. Subsequently, inventory reconciliation, the next step following physical verification, aims to enhance stock management for more efficient operations.
3. Inventory Management Services
Effective inventory management holds significant importance in both trading and manufacturing businesses. We offer advisory services covering various facets of inventory management, including software solutions, the formulation of policies and standard operating procedures (SOPs) for inventory handling, tracking inventory, determining stock levels, calculating Economic Order Quantities (EOQs), conducting stock reconciliation, and designing and implementing internal controls for inventory management.
Benefits of Inventory Counting and Verification
Small and medium-sized businesses often experience disparities in inventory quantities between system records and actual physical quantities due to the absence of a robust internal control system for inventory. As a result, the benefits of inventory counting and verification typically include:
- Maintaining real-time inventory records by consistently matching physical quantities with the system.
- Ensuring thorough tracking of inventory items for enhanced controls and improved inventory planning and management.
- Contributing to the improvement of working capital management, leading to overall business efficiency and increased productivity.
- Offering the company consistent and precise data for informed decision-making, thereby enhancing overall warehouse management.
- Ensuring correct and up-to-date inventory records to guarantee the availability of in-demand items, ultimately leading to increased customer satisfaction and revenue.
Inventory Services in UAE
At JASM, we specialize in conducting stock counts and reconciling accounting records. As an inventory service company, we have successfully assisted numerous clients, particularly in the supermarket and convenience store sectors, with their inventory counting and reconciliation needs. The following outlines our comprehensive steps from inventory counting to reconciliation:
- Strategizing and scheduling stock counts, determining whether to conduct a complete count or cycle counting.
- Labeling warehouse or supermarket areas and shelves based on specific requirements.
- Managing inventory in transit arrangements.
- Conducting physical inventory counts primarily using PDT devices and inventory scanners.
- Contrasting physical inventory count results with MIS/System reports.
- Identifying discrepancies and analyzing their root causes.
- Reconciling differences based on supporting documents.
- Adjusting records following the reconciliation and updating the final inventory in the system.
- Delivering a comprehensive report to the client on potential improvements in inventory management.