Inventory balance is a term used in business to describe the amount of goods, materials, and products currently held by a company. It is an important aspect of determining the overall financial health of an organization as it reveals how well they are managing their resources. In its simplest terms, inventory balance is the difference between what is being purchased and what is sold during a specific period. The accuracy of this data can significantly impact a company’s profits, so effective strategies need to be established in order to ensure correct inventory levels for optimal business performance.