Perpetual Inventory Systems are a much more efficient, modern solution to inventory management, and are in use in just about every modern business.
As the name suggests, perpetual inventory systems record inventory movement perpetually. Whenever a product is sold, thrown away, or written off, a modern inventory management software system records this change – and updates inventory counts accordingly.
This makes it a much more accurate and reliable method of inventory tracking, compared to periodic inventory systems. Perpetual inventory systems have a variety of benefits for small business owners. Here are just a few of them.
- Ensures accurate inventory count - With a properly implemented perpetual management system, it's easy to track your inventory, and ensure that your records are accurate.
- Updated in real-time - Instead of being manually updated after a set period of time, your inventory records are constantly updated after each and every sale. This makes it easier to track business performance, reduce shrink, and track sales.
- Aids in re-ordering and restocking - Because you always have access to information about current inventory counts, it's much easier to reorder and restock popular products.
- Accounting is much easier - Modern perpetual inventory systems can often integrate directly with accounting programs, providing up-to-date balance sheets that can provide business owners with more accurate, useful sales information.
Compared to periodic inventory systems, perpetual inventory systems are almost always a better choice.
Though the cost of buying the equipment and software to run a perpetual inventory system can be a bit steep, the cost savings of having a modern inventory control system make it a wise financial investment.