Each company in any type of industry has its own supplies that they would need in order to keep their business operations running. Supplies are items that an organization use for their daily operations. These items will help employees effectively perform their tasks or contribute to revenue. Office supplies are the most common items used in a company. In some cases, offices buy their supplies in large quantities of bulk that could last for several months. In order to keep track of these items, it is important to maintain a consistent and updated list of supply inventory. In this article let us discuss the importance of managing a supply inventory. If you need any guidance preparing this particular inventory, we’ve got a comprehensive list of supply inventory samples that you can download for free on this page so don’t forget to check it out.
10+ Supply Inventory Samples
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What Is a Supply Inventory?
Although these may seem like small items, supplies that are needed in the office are very useful in many different ways. You cannot properly finish your job if you don’t have pens or bond papers to print out contracts and reports, nor can a courier service work properly without masking tape and a stapler and staple wire. Its items such as these would help speed up a company’s daily operations, this is why it is important that every company take into account their supply inventory. A materials or supply inventory is the stock of supplies that have been purchased but have not been used yet. In accounting terms, a supply is referred to as an asset and this will be considered an expense once used or consumed.
How To Manage a Supply Inventory?
Managing a supply inventory is an important task for any company to ensure that a business does not run out of the necessary supplies it needs and it should be able to properly account for the supply purchases as assets or liabilities under an accrual system of accounting. Also, an effective supply inventory should be able to save the company cost and fully utilize the supplies on hand. So, to start here are several tips that can help you properly manage a supply inventory.
I. Prepare a Spreadsheet
One of the most effective ways to prepare an inventory log is by using a spreadsheet. Although some would still prefer a logbook and a pen, use whichever is more convenient for your company. Using either method will help you properly take note of the supplies inventory, how many items are left, and what should be replenished.
II. Segregate the Supply List
Different office departments may need similar or different supplies, depending on their requirements it is important to properly segregate the supply list such as grouping it by location or type. Separating supplies based on their number or codes can be an option for your company, or for larger companies with several departments, a more detailed approach should be considered.
III. Manage Purchases and Deliveries
It is important that management creates a systematic procedure on how purchases are made to make sure that there is no overstock or in choosing the right supplier that could offer discounts if not is more cost-effective than the rest. Also, deliveries should be properly handled to ensure that you’ve got all the supplies delivered with no defects.
IV. Manage Expenses
Sometimes companies would need to cost-cut if the expenses are too high, and it’s nothing new when office supplies get affected as well. It is important to determine which of the supplies are most used and utilized, and if there is a need to lower expenses, then you will need to find alternatives such as using another cheaper brand or trying to look for another supplier.
V. Perform Periodic Inventory Checks
At the end of every accounting period, it is vital that you perform an inventory check. Compare the total units on hand for each item to the ones entered in the inventory log.
Why are Supplies Considered an Asset?
While these are considered an asset because they hold value, they are not recorded as an asset but are recorded as an expense. If the decision is made to track supplies as an asset, then they are usually classified as a current asset.
Why is Inventory Management Important?
For companies engaged in selling products/items, it is important to have an efficient inventory management. This is to make sure there is rarely too much or too little stock on hand, limiting the risk of stockouts and inaccurate records.
What are the Different Types of Inventories?
The different types of inventories are raw materials/components, WIP, finished goods, and MRO.
Proper management of a supply inventory will help a company manage their expenses and see to it that everyone in the company is able to work efficiently since they have a steady supply of office items.
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