Inventory

Stocktaking is an essential part of business accounting and serves to record the exact inventory of all assets and liabilities of a company. This process is usually carried out at the end of a financial year, but may also be required for other reasons such as business transfers or tax audits.

There are different types of inventory:

• Key date inventory The inventory is carried out on a fixed date.
• Permanent inventory Inventories are recorded on an ongoing basis and reviewed at regular intervals.
• Inventory sampling Only representative samples are taken that reflect the value of the entire portfolio.

Taking stock requires a careful and systematic approach. Firstly, the physical stocks are recorded, usually by counting, measuring or weighing. This process is also known as physical stocktaking. In addition to tangible assets, intangible assets are also identified.

The inventories are then valued according to defined valuation methods in order to determine their financial value. Finally, the result is entered in the inventory register, which forms the basis for the company's balance sheet.

A precise and well-documented inventory is important in order to be able to correctly assess the company's financial situation. Incorrect inventories can lead to wrong business decisions and affect the confidence of investors and partners.