Keeping track of your business inventory can feel a lot like doing laundry – a seemingly never-ending task. While a physical count of your business inventory should happen once a year; it is important to also keep record of how you use your inventory throughout the year.
Make it easy by keeping the packing slips from shipments near your inventory! When you take an item from inventory, make a note on the packing slip about how the item was used. Whether it was inventory sold, given as a host gift or an item taken for personal use…these notes will save you a lot of time when tax prep time rolls around.