At the end of the year the business managers and administrators are preparing not only for Christmas and New Year, but for the annual inventory, one of the most important tasks of statutory compliance. A project that is not expected with happiness all the time and that can make us spend some extra hours at the office.
Even if is not always a desirable task considering the volume of work involved, the resources available and the opacity of the legislation, the annual inventory is the best way for you, as an administrator of a business to know in details every aspect of the organization, from debts to assets and liabilities. Doing the inventory, you will be in control of your own business, knowing its value, its strengths and minuses.
All the operations registered during the year have a story behind and you are the one who knows it better than anyone else. Figures are not only figures, they are the representation of our day by day actions, they are bricks of the business you are building. By doing the inventory together with your financial partner, this meaningful story of your organization will be shared, and everybody will have a more profound understanding. Without your support your accountant or financial partner cannot link the figures with their true meaning and with your business vision.
The inventory is also a tool to mitigate the business risk. When carrying it out, the debt and the receivables level become more visible, the services that are profitable and the ones that are not, the good business decisions made during the past year and the bad ones. Don’t forget that sometimes, surprises may appear and the best way to overcome any difficulty is to be better prepared.
While these assessments require a lot of effort, they are also critical to business performance and for better decisions. Shutting down operations at the end of each year and counting inventory allows you to start the new year with a clean slate.
For a happy new financial year together!