Inventory management is a critical aspect of any business, influencing its profitability and operational efficiency.
Among the various methods of inventory management, the First In, First Out (FIFO) method is a popular choice.
This method ensures that older inventory is used or sold before newer inventory, helping businesses maintain accurate financial records and reduce the risk of obsolescence.
Below we’ll outline precisely what the FIFO method is, why companies use it, provide a practical example of FIFO calculations and offer a step-by-step guide on how to execute FIFO inventory management properly in your business.
2.Train your staff
3.Establish a system
4.Regularly review stock