Inventory Reconciliation

Inventory reconciliation is the process of verifying and matching the quantities of physical inventory on hand with the records in a company's accounting system. This ensures accuracy in tracking what is available for sale or use. Discrepancies can arise from errors in recording, theft, or damage. By regularly conducting reconciliations, businesses can maintain accurate financial statements, make informed purchasing decisions, and reduce losses. Essentially, it's about ensuring that what you think you have matches what you actually have, which is crucial for effective inventory management.