What is a key benefit of conducting Inventory Audits?

Conducting inventory audits plays a crucial role in validating inventory accuracy and preventing loss. Regular audits help ensure that the actual stock levels reflect what's recorded in inventory management systems. This process identifies discrepancies, whether due to theft, administrative errors, or issues in receiving and storing goods. By maintaining accurate inventory records, organizations can minimize the risk of stockouts or overstock situations, thus leading to improved operational efficiency. Additionally, accurate inventory counts help in making informed decisions regarding restocking and inventory management, ultimately reducing financial loss from unsold or excess inventory. This level of accuracy is fundamental for effective supply chain management and overall financial health of the organization.