Why stock records must be kept?

Stock records must be kept to ensure accurate tracking of inventory levels, which is essential for effective supply chain management and to prevent stockouts or overstock situations. They also help in financial reporting and analysis by providing insights into the cost of goods sold and inventory valuation. Additionally, maintaining accurate stock records aids in compliance with regulations and enhances operational efficiency by streamlining the order fulfillment process. Overall, proper stock record-keeping supports informed decision-making and improves overall business performance.