For most small businesses, a yearly inventory for accounting purposes is adequate for proper inventory control.

Question

Quizplus · Accepted Answer

While a yearly inventory is better than no inventory control at all, for proper inventory control, more frequent and regular inventory checks should be conducted. This can help to prevent stockouts, overstocking, or theft. It is recommended to conduct inventory checks at least quarterly or even monthly for small businesses.

For Most Small Businesses, a Yearly Inventory for Accounting Purposes