What is Stock Control
How to manage your companies purchased stock
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
What's covered on this page
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Inventory management for small business.
Stock control is an integral part of any good business. A solid control system will let you see the quantity of each product that is available and whether or not you have enough products to meet the needs of both the business and your customer. Stock takes the most of the capital of any business, so it needs to be kept track of carefully in order to keep costs low. If your small business is home based, this is still quite important. This can be done through a software program or simply through manual notation.
Controlling Stock with Software
A good software package for business accounts will have a stock part built in and is normally the fastest and easiest way to keep your stock tracked. If you are doing it manually you might use stock cards, which are placed behind a certain number of products on the shelf so that when it comes up the business knows to reorder that product.
Without having the basics of stock keeping up to date in your business, there is little chance of keeping any type of tight rein on the spending, or ensuring that you optimize the income that the business makes. If you end up ordering too many items in one product that does not sell as fast as another product, which you run out of and cannot reorder due to lack of funds, you will immediately realize the benefit of keeping track of stock. Stock control can also help you to see trends in sales and make adjustments to the type of stock that you offer. Discounts can be put on stock lines that are not selling quickly and a note can be made not to make any new orders for those products.
Even a small business would benefit from a computerized stock control system because of the possibilities that the structure allows; you can send it to your bookkeeper and know that they will be able to read it, you can make projections and run ratios of total income as related to one product or another, and use the information in a number of ways to benefit the business.
What Is Stock Control
Last modified: 8th March 2018