A periodic inventory system is a way for businesses to monitor and update their inventory levels at regular intervals. This is done by physically counting the stock, usually on a monthly or yearly basis. It is an important tool for businesses to ensure accurate record keeping and prevent potential losses due to theft or improper stock management. With a periodic inventory system, businesses can better determine when it’s time to reorder stock, avoiding shortages or oversupplies. By understanding their stock levels, companies can make sure they have the right items available when customers need them, while also saving time and money in the process. Periodic inventory systems are essential for running a successful business!