When it comes to running a business, keeping up with inventory is very important. After all, replacing equipment that has been lost, stolen, or even improperly maintained can reduce your revenue significantly. Year-end inventory checks are a great way to reduce these costs as long as you follow a few simple steps.
Things You Should Count
As the end of the year starts drawing near, it’s time to think about what you need to count when you start your year-end inventory process. There are plenty of things to consider regardless of your business type.
- Raw Materials – If your company makes something, it’s important to keep track of any raw materials or ingredients you use.
- Unfinished Work – You should also count any unfinished products you might have in stock as these will account for some of your raw materials.
- Finished Work – Things that are ready to be sold are a very important part of your inventory. It’s like money in the bank.
- Equipment – You’ll also need to keep track of any equipment your business uses, either on-site or off. This is very important for equipment that you loan or rent to customers or equipment that your employees regularly take out of the place of business.
How to Check Equipment
The absolute best way to check your equipment at the end of the year involves putting processes into place early on. Equipment is likely one of your biggest investments, so you’ll want to make sure you’re keeping track of it very carefully. QR codes with GPS tracking built right in offer up unprecedented protection and peace of mind. These codes can tell you virtually anything at any time, including the location of that equipment. If something goes missing, you’ll be able to find it – and that alone can save you thousands or even tens of thousands of dollars per year.
Easier Tax Preparation
Another benefit to year-end inventory checks has to do with your taxes – especially if you’re using the right tools. Imagine being able to simply scan your inventory and know exactly how much your equipment has depreciated over time. It will save you plenty of headaches, and it’ll save your tax preparer plenty of time. All of this information can be easily loaded into a database so you can get the big picture, too.
Keeping Up with Maintenance
Finally, year-end inventory checks can help you better understand how and when your equipment has been maintained. Taking care of your equipment is just as important as preventing or dealing with loss and theft. Failing to maintain and repair equipment can result in tremendous losses over time. With the right tools, including QR codes, you can find out when your equipment was last maintained and even automate the service process to a degree.
Reducing lost and stolen equipment is important, and there’s no better time to do it than with your year-end inventory checks. Investing in QR code labels you can scan with your smartphone can certainly make the entire process simpler – and far more accurate at the same time.