Manufacturing
Turning lemons into lemonade: Dealing with excess inventory
Excess and obsolete inventory write-offs are a chronic drag on many businesses. These items are often not counted when the physical inventory is taken. If they are counted as part of the physical inventory, they are often priced at amounts much lower than cost. Either tactic has the effect of writing off all or part of the cost of excess and obsolete inventory as an expense in the financial statements. Unfortunately, a corresponding tax deduction may not be available.
(5/12/2008)
Don't let excess inventory tie up your capital
For many businesses, inventory is the single largest asset on the balance sheet. This means that for every dollar of inventory on the shelf, a dollar of the company's hard-earned cash is tied up. In addition to the direct cost of the inventory, there are many other not-so-obvious expenses that add to the cost of having inventory on hand. Expenses to insure, maintain, manage and control the product add tremendously to its initial cost. Additional costs of maintaining inventory include making physical inventory counts, inventory shrinkage and obsolescence, rent and utilities for space, and filing inventory paperwork – all of which eat into the company's bottom line.
(4/28/2008)
Management retreats: Good idea in tough times
When times are great and money is plentiful, it isn't difficult to budget several thousand dollars for a management retreat. You need your leaders to be at the top of their games when times are tough. But, when things are tight, many business owners find themselves cutting corners, and management retreats are a corner that often gets cut. (4/14/2008)
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