Effective Strategies for Inventory Accounting: Theoretical Principles and Best Practices

Abstract

Inventory accounting is a critical aspect of effective inventory management, ensuring accurate record-keeping, optimizing inventory levels, and minimizing costs. This article presents theoretical principles and best practices in inventory accounting, supported by real-world case studies. Theoretical principles include accurate record-keeping, regular audits, and demand forecasting, while best practices encompass technology integration and supplier collaboration. The case studies highlight successful implementations of these principles, showcasing the benefits of maintaining precise inventory records, conducting regular audits, utilizing accurate demand forecasting, and implementing just-in-time (JIT) strategies. The article concludes by emphasizing the importance of these strategies in achieving improved inventory accuracy, reduced costs, enhanced operational efficiency, and increased customer satisfaction..