The Income Statement Perpetual Inventory System (ISP) is an accounting method that supports businesses in keeping accurate financial records. This system creates detailed reports of all inventory transactions within a specified period, including costs of purchase, sales revenues, product discounts and more. Not only does this system help companies accurately track their finances, it also helps them make informed decisions about their inventory levels and pricing strategies. By using ISP to track the flow of physical goods and money through their business, managers can gain valuable insights into their operations and identify areas for improvement.