Category Archives: Inventory Control

Posts about controlling inventory in small businesses.

Inventory turnover – why measure it?

Small business owner-managers will tell you [over and over] – “cash is king”. They are often puzzled why their cash flow is poor but the profit and loss statement is healthy. If the business is growing, then there will be pressure on cash flow. Why is this? There are lots of reasons but most often… Read More »

Why do I need an inventory control system?

Many small businesses operate without an inventory control system. When they buy goods for sale they post the cost directly to the Profit and Loss account under the title “purchases”. In this case the Gross Profit on the sale is calculated as: Gross Profit = Sales – Purchases Simple. What is wrong with this? Most… Read More »