Inventory control is an integral part in every business
. There is no business that exists without inventory. Even the micro enterprises that are flourishing in every economy has to have an stock control in their system. If you are a micro enterprise, probably you don't have a POS system that can help you keep track of your business dealings. But sooner or later you if you manage your business really well, you will have to invest in a POS system to help you run your business smoothly.
However big or small your business is, you still must have some sort of inventory control to help you with your inventory. If you are still a budding entrepreneur and you don't have any idea what to do first, then you must be aware of FIFO. FIFO or First In First Out is a great way to handle stock control. This is especially true if you are in the kind of business that has a lot of perishables.
Take for example the food business. You have your own suppliers and they will deliver what you order. FIFO will always be the best way to go because as deliveries begin to pile up, if you don't have inventory control you will not be able to keep track of what you have in your stocks and when those stocks were delivered. Not keeping track means that there will be a lot of waste in your inventory because as these are perishables, they have expiration dates. A lot of waste in your stocks mean a lot of waste in your sales as well.
The FIFO system can help you in your stock control and forms a great part in your accounting as well. Your finance officers will also use this kind of system in keeping tabs on which supplier to pay first. This is especially true if you have already built a good relationship with your suppliers and they have already trusted you enough to give you a credit line. Payments will be made according to who delivered what supplies first. This is not complicated especially if you have a POS system that can help you keep tabs on this.