Question

How can QuickBooks be used to count inventory? Is there a particular report in QuickBooks that you think is most useful in tracking inventory? Why do you this this particular report is most useful?

Answer 1

Well QuickBooks has a very good option which helps you to keep track of your stock.

In QuickBooks under reports, you can find inventory reports under which there is a physical inventory worksheet. This physical inventory worksheet will have the following columns,

1. Quantity on hand, and
2. Physical count.

Quantity on hand is what the inventory details updated as per the QuickBooks and the physical count is what you will enter as per the physical count conducted.

Now there arises a question, as the count is already available with QuickBooks why this physical count column. The thing is that even if the record is available in the report the physical count of inventory will vary with that because there may be spoilage, theft and etc; so inorder to identify and control such loss of stock it is very important to compare the physical inventory with the report available.

Hope the above explanations clarified all 3 of your questions. They are one and same and so can't be explained seperately.