Beginning and Ending Inventory – also known as opening and closing inventory – represent the stocks of goods that a business has on hand at the start and end of a given period. They are used to calculate the cost of goods sold, and their value can have an impact on net income. In order to accurately calculate these numbers, businesses must conduct inventory counts at the beginning and end of each accounting period, ensuring accuracy by recording even the smallest changes in stock. This type of inventory tracking is essential for any business that wants to optimize their processes and increase productivity.