International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Financial Impact of Manual Inventory Record Errors
Dr. Shamia Wynn, Dr. John R. Kuhn, Jr

All classes of inventory are an equally important asset and are accounted for as money on every business’s balance sheet. The senior leaders of manufacturing businesses are obligated to protect the possession of inventory and to develop strategies to ensure items are converted to revenue. Inaccurate inventory amounts, waste from utilizing incorrect components in production, and the wrong pricing on all classes of inventory were the most frequent inventory errors accounted for by utilizing manual operating practices. The gaps in the security of the controls and the lack of traceability on the inventory movement have plagued the financial growth of small and large businesses. The presence of excessive manual inventory errors negatively impacts the effectiveness of inventory controls, inventory management, sales and profitability, and executive decision-making.

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