Year End Inventory: Your Accuracy is About to be Tested
Accuracy Testing In The New Year
A new year is kicking off, and while it may feel like the pressure of the holiday fulfillment season is over, as a manufacturer, this is a critical time to prove the accuracy of your inventory. Inventory is one of a manufacturer’s biggest assets. Accuracy testing can be a challenge for any business, here is some advice to best prepare for this year-end review.
The Challenge of Inventory Auditing
Preparing and delivering year-end inventory creates a busy time of year for manufacturers. As the New Year starts, it may feel like the holiday rush is over. However, this is the time when most warehouse customers are required to prove the accuracy of their inventory count. Many warehouse customers need to bring in bank auditors as part of the official year-end count and review. Manufacturers are expected to provide a detailed paper trail, which may include receipts, documentation, and any other requested explanations. If your inventory was managed properly throughout the year, this process is should be relatively straightforward. However, if there are holes or errors in your inventory management, this is where a manufacturer’s business can suffer.
Creating Successful Inventory Management
The key to successful inventory management is being able to prove accuracy through accurate counts and proper documentation. This can help to create a stronger relationship with the manufacturer’s financial institution, by creating fewer adjustments to be explained and justified to the auditors. Manufacturers can minimize problems with documentation by reconciling inventory on a monthly basis. Once an accurate system is in place, and the client’s accounting and warehouse’s inventory systems are synced, it makes inventory easier to reconcile. This will help create a paper trail that can explain how figures were drafted, and ensure accuracy in reporting. By creating this documentation, the manufacturer has the ability to make any adjustments needed for an audit in a timely manner.
How Orion Can Help
At Orion, we help to provide manufacturers with the resources needed to help create proper inventory management. We provide inventory documentation, copies of inventory transactions documents, and any other supporting materials needed. All of these resources are provided in real-time, and not handed over at the end of the year. We pride ourselves in our impeccable track record in reporting and documentation accuracy for our clients. Contact us today to see how we can help improve your logistics process.