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DIFFERENCE BETWEEN PERIODIC AND PERPETUAL INVENTORY SYSTEM

All business owners must be aware of the inventory system on how it works. there are two different types of inventories in a business periodic and perpetual inventory system. have a look at their main difference <br>1. RECORDKEEPING<br>2. TRACKING PURCHASES<br>3. DOCUMENTING THE SALES<br>4. COST OF GOODS SOLD<br>5. RECORDING CLOSING ENTRIES<br>6. EXAMINING TRANSACTIONS<br>as an entrepreneur, you must consider these differences to keep an in-depth knowledge about the two types of inventories. The bookkeeper in Melbourne is the right person to keep the record.<br>https://www.agibookkeeping.com.au/difference-between-per

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DIFFERENCE BETWEEN PERIODIC AND PERPETUAL INVENTORY SYSTEM

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  1. DIFFERENCE BETWEEN PERIODIC AND PERPETUAL INVENTORY SYSTEM

  2. Inventory is an essential tool for all business owners. To track the quantity of goods on hand, there are two different types of inventory system - periodic and perpetual inventory system.

  3. PERIODIC INVENTORY SYSTEM In the periodic inventory management system, the bookkeeper physically counts the stock but only once in a while. For example, physical stocktaking at the end of every quarter or the year.

  4. PERPETUAL INVENTORY SYSTEM In this system, there is complete control over every unit in the stock with the help of an inventory ledger, which is always up to date.

  5. DIFFERENCES BETWEEN THE TWO SYSTEMS 1. RECORDKEEPING 2. TRACKING PURCHASES 3. DOCUMENTING THE SALES 4. COST OF GOODS SOLD 5. RECORDING CLOSING ENTRIES 6. EXAMINING TRANSACTIONS

  6. For effective management and utilisation, inventory must be organised accurately. Your bookkeeper in Melbourne is the right person to take care of the task. As a business entrepreneur, one should know how to use the inventory and how it works.

  7. FOR ADDITIONAL INFORMATION, EXPLORE :- https://www.agibookkeeping.com.au/difference-between-periodic-or-perpetual-inventory-system/ CONTACT - (03) 9088 0251

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