A current inventory report is a document that lists the quantities and types of items that a business currently has in stock. This report can be used to track the availability of products or materials and to identify when additional orders need to be placed. It can also be used to monitor the efficiency of inventory management practices and to identify potential issues such as excess or obsolete inventory.
Why do I need a Current Inventory Report?
Your banker may request a copy of your current inventory report for a number of reasons. One possible reason is to assess the liquidity of your business. If you have a large amount of inventory on hand, it may indicate that you have strong sales and are able to turn over your inventory quickly. On the other hand, if you have very little inventory on hand, it could indicate that you are struggling to generate sales and may be at risk of running out of inventory.
Another reason your banker may request a copy of your current inventory report is to assess your inventory management practices. If you have a high level of obsolete or excess inventory, it could indicate that you are not efficiently managing your inventory and may be incurring unnecessary costs. This could be a concern for your banker, as it could affect your ability to repay your loans.
Overall, a current inventory report is an important tool for businesses to track their inventory and manage their operations. It can provide valuable information about the health and performance of a business and can be used to identify areas for improvement.