Notes on Inventory Record and the Importance of Inventory Record

1. An inventoryrecordshouldincludeall assets(land,buildings,machines,equipment,tools,livestock,
feedandothersupplies),the value andquantity.Inventoryrecordcanbe simple (separate foreach
asset) or complex (collectivelyforall assets,it canbe done manuallyoron a computer.Inventoryrecord
isessential since itgivesthe farmerready informationon the items he hasand whathe would needin
the near future. Aninventoryrecordcanallow afarmerto betterable organize otherrecords.In order
for yourinventoryrecordtobe effective farmersmusthave itdone itdollar values.Inventoryrecords
shouldalwaysbe accurate because the accuracy of inventoryrecordsiscritical forthe operationof the
farm resource planning. Inventoryrecordsshouldbe takenannual usuallythe endof Decemberand
shouldhave the quantityof eachitem.Aninventoryrecordis requiredforall farmingenterprize.
Benefitsof keepinginventoryrecords
1. Improvingthe accuracy of farmeraccountingandprofitreporting(maintainingaccurate inventory
recordsensure upto date accounting).
2. Identifyissuesbeforetheygetoutof control (if a farmerkeepsandan eagle eye onhisinventorylevel
he will identifyissuesas soonastheyappearrather than five( 5) monthslater).
3. Efficient-reordering(re-orderingprocesswill be faster,more efficientandreliableif itemsinstockand
the conditiontheyare in).
4.Minimize theftandlosses(nobodyenjoysknowingtheirstaffsare stealingfromthem, butwhena
farmeror a farmmanageris vigilantandhave anaccurate inventoryrecordsysteminplace staff will
knowthentheftwill be highlydiscourage).
5.Efficientstocktakingatendof-year(whenfarmersinventory recordsare uptodate at all times,thenit
allow a periodicstock takingwill be fasterandmore efficient).
An inventoryrecord for a school tutorial vegetable farm
Tools and equipment
description
Quantity Value ($) Remarks
Gardenshovel 2 2500.00 Good condition
Gardenhoe 2 2000.00 One missing stick
Seeds 2 ounces 360.00 Will be sowninthe
comingweek
Gardenfork 3 7500.00 one damaged(missinga
teeth)
Cutlass 5 1500.00 One iswithouthandle

2. Wateringcan 2 600.00 Excellentcondition
Knapsacksprayer 1 5600.00 Good condition
Total 20,060.00