An Empirical Study on the Impact of Systematic Bookkeeping Practices on Inventory Control Efficiency in Small Grocery Shops

Abstract

Small grocery stores with limited capital and high variability of demands need effective inventory management to reduce their sustainability and profitability. The paper is an empirical survey comparing the effects that systematic bookkeeping had in relation to inventory control within the small grocery stores. The 120 respondents were chosen as shop owners and a structured questionnaire was used to gain primary data, and statistical software like a descriptive analysis, correlation, and regression were utilized to verify the correlation between bookkeeping practices and inventory performance measures, these measures included inventory turnover, the frequency of stock-out, and control of holding costs. The results show that there is a positive relationship between systematic record keeping and inventory efficiency which is significantly explained by the bookkeeping practices in relationship to variations in the inventory outcomes. The effectiveness of shops that used digital or hybrid bookkeeping systems was better than those that used manual records. The authors arrive at the conclusion that it is due to structured bookkeeping with the support of basic accounting skills and digital resources that optimization of stocks and efficiency of operations in small retail enterprises correspond to a vital role.