Inventory can be the object of outsourcing. Third-party specialized companies have their technology and methodology for inventorying, specialized expensive software and equipment, as well as the professionally trained staff of specialists whose wages are lower than those of warehouse and office staff often involved in inventory.

Inventory is organized based on the written order of the head of the organization. For its conduct, a commission of at least three people is created. The commission may include specialists of the necessary profile representatives of the internal control of the enterprise. The inventory commission has to perform the following duties.

  • For the timeliness and observance of the order of inventory per the request of the head of the enterprise.
  • For completeness and accuracy of entering the inventory data on the actual balances of inventory items.
  • For the correctness of the instructions in the descriptions of the distinguishing features of commodity-material values ​​(type, grade, brand, size, article, etc.)
  • For the correctness and timeliness of registration of inventory results.

 

Purpose of inventory

Main aims of inventory involve:

  • Determination of the actual number of material and production resources used in the production process;

 

  • Comparison of actual data on the availability of property in kind with data from analytical and synthetic accounting (identification of surpluses and shortages);

 

  • Verification of the completeness and correctness of accounting for the assessment of property and liabilities. Including the possibility of valuing commodity and material resources, taking into account their market value and actual physical condition. It is said to be the primary purpose of the inventory.

Inventory procedure

The inventory procedure consists of several stages.

The first stage is preparatory. It includes the following activities:

  • preparation of an order to conduct an inventory;
  • formation of an inventory commission;
  • Determination of the timing and types of inventory property;
  • Receipt of receipts from financially responsible persons, etc.

 

The second stage is weighing, measuring, counting, identifying, and verifying the actual availability of property and liabilities, as well as drawing up inventory inventories. The third stage is the comparison of the data of inventories with accounting data: discrepancies are detected, identification lists are drawn up, and the causes of differences are determined. In addition to this, the process of bookkeeping can also be used in this process.

The final stage is the registration of inventory results. At this stage, the accounting data are brought into line with the results of the inventory, the persons guilty of false accounting of property are brought to administrative responsibility.

Scheduled Technical Inventory

The scheduled technical inventory process is the most commonly used. This process of inventory is carried out regularly with an interval of not less than five years after the previous inventory (primary or planned). The procedure includes the study of capital construction objects, identification of changes in their technical condition, and documentation of all received information following the provisions of the current legislation of the government.

 

Unscheduled Technical Inventory

The process should be carried out with actual changes in the parameters of capital construction objects. Also, we are talking about both the technical and qualitative aspects of their condition. Most often, this type of inventory is carried out with re-planning and other changes in the characteristics of objects. The same applies to situations in which real estate is subject to exchange or sale. The procedure and timing of the inventory, including cases in which this procedure must be carried out, are determined by the company independently. Also, the company itself determines the list of objects subject to such verification. At the same time, there are several cases when the inventory is mandatory.

  • When transferring the company’s property for rent, sale, redemption;
  • A change of financially responsible persons;
  • When revealing facts of damage or theft of property;
  • In the event of emergencies that could affect the state of the company’s assets;
  • When the firm is liquidated or reorganized;
  • In other cases provided by law.

From the above items, it was evident that the inventory, as an element of the method of accounting, in the situations described is mandatory not only under the law but also in terms of pure logic. After all, without conducting an audit of assets and liabilities in all the cases listed, it would be difficult to talk about the correctness of their reflection in the organization’s account in the future.

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