Companies whose specific activities require the existence of inventories of goods and materials often face challenges related to having reliable and verified information about these inventories.

Also, according to the regulations in Georgia, accurate description and declaration of inventory balances and fixed assets has become mandatory since 2023. In accordance with the Order of the Minister of Finance of Georgia No. 996 of December 31, 2010, it is impossible to submit a profit tax declaration without filling in the inventory balances.

Inventory involves a detailed description of both tangible assets and fixed assets and their comparison with program data, which makes it possible to determine the actual state of accounting balances.

Why and when is inventory necessary?

• Identifying discrepancies in inventories/fixed assets: When there is a reasonable suspicion that the actual balance differs from the accounting records
• To determine the actual amount of property
• The need for accurate data during property purchase/sale/rental transactions
• Upon change of the person materially responsible for inventories and fixed assets
• When detecting deficiencies/excesses
• In the event of liquidation or reorganization of the company

What are we doing?

• The inventory process primarily includes inventory planning and the formation of an inventory group, consisting of representatives of our team and responsible persons from the customer company.
• Based on the information provided by the customer, our team prepares a property/supplies list, which describes the name, quantity, and location of the objects.
• During the inventory process, actual quantities are compared with accounting data.
• In the event of discrepancies in property and supplies identified during the inventory process, actual results are reconciled with accounting data and any shortages or surpluses are recorded.
• Grouping and displaying fixed assets on your balance sheet
• For effective inventory management, we provide barcode assignment, which allows inventory movement to be easily and accurately controlled.
• As a result of the inventory, you will receive a detailed report that will include all the factual data that was identified during the work process, as well as recommendations that will help you eliminate existing shortcomings/deficiencies.

Benefits for your business

Possession of information about the exact balance of inventories and fixed assets :

• Helps you detect and respond to errors in a timely manner
• Helps you make the right financial decisions
• Ensures compliance with regulations and submission of declarations with maximum accuracy
• Necessary for conducting a financial or tax audit process
• You avoid potential fines and/or overpayment of taxes
• Helps you have accurate and verified information regarding the market value of your assets
• Ensures process optimization

Who do we serve?

Inventory is an important process for the preparation of highly accurate financial statements and is needed by anyone who cares about accurate asset accounting, minimizing losses, and effective business management. Inventory services are often used by:

• Trading companies Whose activities are related to the purchase and sale of goods (e.g. supermarkets, retail and wholesale trade). And want to ensure accurate inventory accounting, avoid losses, identify unsuitable and/or excess inventory
• Industrial and manufacturing companies to control raw material inventories, ensure a continuous production process, and assess the quantity and quality of finished products.
• Companies that own various fixed assets for the purpose of further leasing them
• Service sector companies that own various fixed assets and inventories

Our approach

• Initial consultation : Determining your business specifics and inventory needs
• Detailed description : Determining the quantity, location, and condition of the inventory or fixed assets to be inspected and reconciling them with accounting data
• Detecting discrepancies: Identifying gaps and redundancies and sharing information with the customer
• Reporting and recommendations : Preparing detailed conclusions and offering customer-specific recommendations for further process improvement
• Ongoing support : Providing periodic inventory, if necessary

Loialte ‘s inventory services ensure accurate and efficient management of your inventory and fixed assets, helping you avoid unnecessary losses, reduce regulatory risks, and streamline your business processes.

Contact us today and learn more about the benefits you will receive by partnering with Loialte!