Why is stock rotation important?

Maintaining product freshness: FIFO helps ensure customers receive the most recently produced products.

Optimizing inventory levels: FIFO helps identify and control outdated or less-ordered inventory.

Improved decision-making: FIFO provides accurate product information, which helps businesses make decisions on purchasing, sales, and promotions.

Accounting accuracy: FIFO complies with generally accepted accounting principles (GAAP), providing fair and accurate profit reporting.

Tax deductions: FIFO can help businesses gain larger income deductions by expensing the cost of sold inventory.