If you run a small business then you will find that there is a need to use petty cash; this is the money that is withdrawn from the bank account and used to buy small everyday essential items like milk and tea or coffee and biscuits, stationery and postage. Your business should have procedures in place that relate to the handling of petty cash, and keep a ledger current with deductions made from it.
Stock control means keeping a current count on all of the products that are in your business. When a product is sold, the stock control should be reduced by one item. This allows for reordering to be done with ease. There are several different types of stock within a normal small business, included among these are:
- Work in progress – stock of unfinished products
- Goods ready for resale
- Raw materials and components to make a new product
- Consumables – including stationery and printer supplies