A perpetual inventory system is a method used by businesses to continuously track their inventory levels in real-time. This system updates inventory records automatically whenever a sale or purchase occurs, providing accurate and up-to-date information about stock on hand. It helps businesses manage their inventory more effectively, reducing the risk of stockouts or overstocking. In a perpetual inventory system, technology such as barcode scanners and inventory management software plays a crucial role. These tools allow for quick data entry and retrieval, making it easier for businesses to monitor their inventory and make informed decisions about restocking and sales strategies.