Before Debt management let’s talk about DEBT, Debt is money borrowed by one party from another to meet a financial need that would otherwise not be fully met. Many organizations use debt to purchase goods and services that they cannot afford with cash. Under the debt contract, the borrower is allowed to receive any necessary funds provided that the funds are repaid on an agreed date. In most cases, the amount owed is paid with some interest. Depending on the amount borrowed, a debt can be either asset or complex. Knowing the best way to manage debt can be difficult, especially for a borrower struggling to make scheduled payments.

There are many types of debt, but the most common are auto loans, mortgages, and credit card debt. Based on the agreed terms, the borrower must repay the remaining amount due on the appointed date. In addition, the terms often stipulate the interest that the loan will earn during the service period, as a percentage of the principal amount. Interest is an essential part of a loan because it ensures that lenders are repaid for the risks they take on and encourages borrowers to make quick payments to limit interest costs.

It is important to educate yourself on both the terms “GOOD DEBT” and “BAD DEBT”.

Stock taking is knowing the amount of goods available in stock and recording them manually. You get to check the condition of the goods as well. It is one of the process required for company audit

You can determine which of your products is selling, which isn’t selling and the ones that might be in bad condition.

It can help increase gross profit, reduce loss as well and avoid debt. Sometimes, there could be theft and in this process it is quite easy to detect.

Let’s talk about the procedure of stock taking

1: Choose a time and date:

Depending on your type of business, or the kind of goods you sell or services you render you can choose a time suitable for stock taking. Find a time that will be convenient for you and your staff.

Make sure it doesn’t affect the activities of the business.

2: Stock taking tools should be organised ahead:

These are some of the common tools used Pen, papers, scale, scanner, calculators. There might be others needed but these are the basic things.

3: Prepare the stockroom:

If the stock room is well arranged, it’ll make it easier to take count of the stocks and avoid miscounting. Whatever that can be done before hand to make sure there are no mistakes when stock taking should be done which includes tidying up the stock room.

4: No movement of stock in and out of the stock room while stock taking is on going, this can affect during the counting process.

5: Count Everything:

While the stock taking is going on it is advisable to count everything in sight, mistakes do happen and if not addressed quickly can cause serious havoc. Never assume or guess. Record even goods not in good condition.

After counting, analysis should be done. The new stock taken should be compared to the last inventory taken if they don’t align then a recount might be needed.