Six Easy Tips for Successful Stocktaking
Posted 22 April 2015
For each financial year, business owners are expected to complete their stock take. Owners need to count the inventory they have on hand at the conclusion of each financial year. This will provide an accurate representation of the total value of the business’s assets and identify any variations between their records and actual stock.
With the end of the financial year fast approaching, Southside Accounting has compiled a list of the top six tips for successful and efficient stocktaking.
- Be clear about what you want to measure. The first step is to identify the stock you want to count and where they are located.
- Communicate with your team.Ensure everyone on your stocktaking team knows what constitutes a ‘unit’ for each stock item and have a good working knowledge on how to operate the recording system.
- Be consistent. Ensure you conduct your stocktaking at the same time or the same day. Consistency is critical to obtain an accurate picture of stock movement and gross margin value.
- Assuming numbers is an unnecessary risk. Do not estimate the amount of stock you have, even if you think you have a good idea about the quantities. It is much more efficient to get it right the first time.
- Remove distractions. Discourageidle chitchat and the use of mobile phones by your stocktaking team. Distractions can easily lead to errors in counting numbers.
- Follow through. Check the variations between actual stock numbers and the accounting records as they may indicate problems with stock management.
Stocktaking often presents a difficult and tedious task to business owners. In many cases, seeking the services of a professional stocktaking team provides the best option.
Southside Accounting takes the hassle out of stocktaking. To find out more about our services, give us a call today on 1300 769 449 or fill outour enquiry form here.