The Perpetual Inventory Method is a system of inventory management that enables businesses to accurately track their inventory levels in real time. This system requires careful recordkeeping and regular audits, as it assumes that products can be sold immediately and continuously throughout the year. By keeping precise records of incoming and outgoing products, companies can avoid costly overstock or out-of-stock problems. Additionally, this method allows them to easily predict demand, allowing them to better manage their resources and maximize profits.