Inventory bookkeeping is the process of tracking the quantity, value and movement of materials in a business environment. This requires meticulous record-keeping of items purchased, used and sold, to ensure that the inventory remains accurate and up to date. It also involves keeping track of stock levels and stock value, by maintaining an inventory journal with detailed entries showing unit cost, sales prices and profit margins. By utilizing effective inventory bookkeeping, businesses can stay on top of their supplies and make informed decisions about buying and selling, as well as efficiently budget for future purchases.