Periodic vs Perpetual Inventory System: The Key Differences Explained

The perpetual inventory system does tend to be more costly to operate due to the need for proprietary software and asset tracking tools. For those companies, however, which require quick, accurate information, the return on investment pays good dividends in efficiency and good decision-making. Ongoing tracking of inventory allows a company to respond to shifting demands immediately, therefore maximizing customer satisfaction and operational success.

Finally, the perpetual inventory system is one of the strong tools for an entity with complicated inventory and high volumes of transactions. Next, we compare periodic vs. perpetual inventory side by side, highlighting the important features of each and guiding you through making the right decision for your business.