← Financial Management for SMEs: Financial Control and Decision Making

Inventory and Asset Management

Module 05 / 6 · 60 min

Keep stock records that match the store, value stock correctly, run and investigate stock counts, set reorder levels, and keep a fixed asset register that supports depreciation, insurance and tax.

In this module you will learn to

Keep stock records from purchase order to issue note and reconcile them to the ledger
Value stock with weighted average or FIFO and explain the effect on profit
Plan a stock count, calculate the gap and investigate it properly
Set reorder levels and inventory controls such as segregation of duties and ABC analysis
Maintain a fixed asset register and apply book and tax depreciation rules

Built on

Erudite Africa training curriculum: Financial Management for SMEs, Level 2 Intermediate, Financial Control and Decision Making (October 2026)
Financial Reporting Proclamation No. 847/2014 and the Accounting and Auditing Board of Ethiopia (AABE) adoption of IFRS for SMEs; Commercial Code Proclamation No. 1243/2021
Federal Income Tax Proclamation No. 979/2016 as amended by Proclamation No. 1395/2025, and Council of Ministers Income Tax Regulation No. 410/2017 (depreciation rates)
VAT Proclamation No. 1341/2024, VAT Registration Directive No. 1104/2025 and Electronic Invoicing System Administration Directive No. 1142/2026
Federal Tax Administration Proclamation No. 983/2016 as amended by No. 1434/2026; Private Organization Employees' Pension Proclamation No. 1268/2022; Labour Proclamation No. 1156/2019
Published good practice on 13-week cash forecasting, working capital management, management accounts and spreadsheet controls

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.