Inventory Procedures and Documentation are the steps taken to maintain accurate records of a company’s inventory. These steps include tracking incoming goods and outgoing orders, documenting changes made to the inventory, and establishing rules to prevent loss or theft. An effective inventory procedures and documentation system allows businesses to maximize profits by minimizing shortfalls in supply and reducing overhead costs due to expired or mishandled goods. It also serves as an invaluable source of business data for budget forecasting and decision-making.