Inventory Management And Fixed Asset Management Essay

Inventory Management And Fixed Asset Management Essay

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Inventory Management and Fixed Asset Management – One and the Same?
Professional service firms don’t sell products, rather they sell their time and expertise. The common problem is that many smaller firms see the profits generated from their services, but they overlook their losses from poor inventory management and fixed asset management. Even worse, they sometimes manage and track them in the same manner. To make things a bit more complicated, inventory management and fixed asset management are not one and the same. The goal here is to explain the difference between the two and, to explain the importance of utilizing proper accounting for fixed asset management.
Inventory Management
In the professional services world, inventory management is a slightly different from the retail and the production world. In the latter, inventory assets represent the items sold by a retailer or the materials used to create a final product that will be sold. On the hand, inventory assets in professional services represent the materials they use to provide a service, such as binders and other office ...

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