Having an accurate picture of your company’s inventory costs is often essential for determining profitability. If you don’t know how much your inventory is worth, you can’t determine the cost of goods sold and your company’s net profit. If you plan to sell the firm, potential buyers will want to know the value of items sitting on your shelves, stacked in your warehouse, and being prepared for sale. Banks, too, will want to understand the value of your inventory before extending credit. (more…)