Inventory tracking, as the name suggests, refers to the tracking of stock levels throughout a business’s operations. These are continually in flux as customers make purchases and new stocks are brought in, whether to replace items that have been sold to those customers or in anticipation of changing demand patterns (as in the run-up to Christmas, for example).

There are two reasons why inventory tracking matters so much. Firstly, meeting consumer demand and secondly, the amount of money at stake. For businesses, it’s essential to streamline inventory management so that customers can find the right products and also to ensure that businesses don’t waste money on excess inventory.

Bigger businesses can devote more resources to warehouse management and inventory control. Some even have specific departments concentrating entirely on this work. For smaller businesses, this is obviously less realistic as an option. Nevertheless, tools such as inventory tracking software can help these small firms keep on top of warehousing, fulfillment, and more.

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.

The key difference between managerial accounting and financial accounting relates to the intended users of the information. Managerial accounting information is aimed at helping managers within the organization make well-informed business decisions, while financial accounting is aimed at providing financial information to parties outside the organization.