Care & Share undertook its annual physical inventory on January 2, 2025. With the help of 113 volunteers, the task was finished within one day! We want everyone to know how grateful we are for those who came out to assist with the counts, as well as those who came to wait on customers and prepare merchandise for sale. A total of 376 hours were donated by our volunteers on Thursday.
Walking through the shoppes and departments, you couldn’t miss the sense of purpose…and fun!…that our team members were having as they performed this important work. It was reminiscent of pre-Covid days, when our departments were routinely filled with volunteers working together.
Our thanks also to our department managers and staff who recruited volunteers to come in and help, many on a different day of the week then they normally serve. The counts were well-organized and performed. Our external accountants, who observed and tested the work as part of their annual audit, complimented the good counts and records. It was certainly a case where many hands made the job easier. Thank you!
Some background and frequently asked questions on the annual physical inventory follow, based on your inquiries and comments from January 2.
Q: What exactly is the annual physical inventory count?
A: At year-end, we take a “retail value inventory” of the merchandise that exists at the end of the calendar year (which also represents the end of the fiscal year for Care & Share). This represents a count of all processed merchandise that is available for sale at a point in time. We count merchandise that has been sorted and assigned a price. That information is then compiled, evaluated for the cost value, and recorded in our financial statements.
Q: Why count the inventory, isn’t it a waste of time?
A: By performing the inventory count carefully, it allows the external accountants to provide an audit opinion on our financial statements. As a best practice, we have our books audited annually to provide our supporting communities the added assurance that we are careful stewards of the gifts that are provided to us. An audit looks at our accounting practices and controls, and assures that our financial statements are prepared in accordance with accounting standards. The recognition of inventory provides our organization with a solid ‘snapshot’ of our financial condition as of December 31, 2024.
Q: Since our merchandise inventory was donated, why is it assigned a value?
A: It’s true our inventory is donated, but to get it to the sales floor, there is a lot of value and cost that needs to be added to the goods. Think labor, workroom space, utilities, supplies.
Thank you again for your support!
