Internal control over inventory is an important part of business operations, designed to ensure accuracy and efficiency in managing resources. It establishes policies, procedures, and systems that help manage the flow of goods into and out of the organization. This includes tracking materials as they enter and leave storage areas, verifying their accuracy to reduce waste and loss, and monitoring their supply levels to identify when it’s time to order more. By implementing a system of internal control over inventory, businesses are better equipped to plan ahead and anticipate customer demand. Ultimately, this helps create a more efficient and organized operation overall.