Why is it important to manage inventory?

Inventory treating as current asset, Even it treat as current asset, It has to be calculated for an accountant to find the closing value for a particular period as it important which helps to find the volume of consmption for the production. 

Its important to manage inventory to know the inventory level at tall times, to know the reorder level, to know when they are expiring and above all to know the value of inventory at all times for financial reports 

Inventory Management is most important in the Accounting as most of funds are involed in the Inventory of any company. If your inventory is not adequest it will affect on the sales and purchases area of the company. If inventory is more then it may turn in to the dead investment and if it is less then it may affect on the sales of the company. Inventory management is need to find out the consumption of the production value too.

Inventory is to be seen as dead money as well as delivery preparedness. Level of inventory has to decided based on the projected requirement and lead time to recoup.

If delivery commitments can not be met due to inadequate stock, it leads to Business loss. On the other hand , high level inventory is dead stock, which will not generate any income , other than protection aginst price rise.

Inventory control is also important to maintaining the right balance of stock in your warehouses. You don't want to lose a sale because you didn't have enough inventory to fill an order. ... Too much inventory can trigger profit losses––whether a product expires, gets damaged, or goes out of season.