As the financial year end approaches for many businesses preparations will begin for the annual stocktake.
A stocktake is a physical count of inventory on hand and provides a business with an accurate reflection of stock held. It is advisable that stocktakes be carried out regularly, however some businesses choose to do so only at their year end.
We outline here some suggestions and recommendations for carrying out an efficient and effective stocktake.
Why Conduct a Stocktake?
There are many advantages to conducting regular stocktakes in your business, including:
Cashflow can be improved by identifying slow moving stock items thus reducing the level of such stock and working capital tied up.
Accurate profit margins
Regular stocktakes enable you to accurately monitor profit margins across the whole range of products for sale.
Identify slow moving stock
Regular stocktakes help to identify items of stock that are slow moving and change future stocking decisions.
Improve stock management
Understanding your stock levels will enable you to minimise waste and to identify if there is a problem with misappropriation or theft.
Suggested Method for Completion of a Stocktake
Before you commence your stocktake you should have a full understanding of the resources and time required, so as to reduce the level of interruption to your business. To minimise disruption to your business a stocktake should be conducted during the quietest time of the day, with most businesses conducting stocktakes outside of business hours.
As part of your planning procedures you should also ensure you have:
Organise Staff (more…)
- A plan of how the stock count will be performed and controlled setting out counters and checkers and the overall objectives
- Stock sheets to enable a full systematic count of stock held
- Recording methods for stocktaking Pens / Calculators /Hand Held Scanners