Stocktakes
Sarah Stein
? Helping Time-Poor Australian Business Owners Streamline Finances, Optimise Cash Flow, and Reduce Stress with Tailored Bookkeeping Solutions.
Depending on your business, stocktakes may be necessary and can be conducted weekly, monthly, quarterly, or annually. The key is to maintain consistency in both frequency and method.
For some businesses, a stocktake involves manually counting inventory with a clipboard, which can be time-consuming and prone to human error. Other businesses might have systems connected to Xero, recording stock as it comes in and goes out, keeping the stocktake updated with each transaction. This automation eliminates the need for manual counts.
However, technology is only as good as the data entered. Embrace technology, but don't blindly trust its accuracy. Implement checks and balances to verify the numbers.
A bonus end-of-financial-year tip: Remember, stock on the shelf represents money not in your bank. It's money out of your bank because you've probably already paid for it but haven't yet converted it to cash.
Consider how long it takes to move some items and find ways to turn stock around quicker to get cash into your bank account faster.
If you have unsold stock, consider an end-of-financial-year sale to move it and get cash.
Evaluate if some items are better ordered as needed rather than keeping them in stock, tying up funds.
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Conversely, if you're quickly selling certain items, consider increasing stock levels to benefit from volume and freight discounts on larger orders.
Once you've completed your stocktake, give the numbers to your bookkeeper. While we don't need to know the quantity of each item, we do need to know the value. This value is an asset to your business and will be recorded in your financials.
PS. Whenever you’re ready, here are 3 ways we can help you eradicate financial stress in your accounting firm or professional services business – faster …
I help businesses to save time and improve cash flow
8 个月I remember a number of years ago assisting the Management Accountant preforming a stocktake, at David Bull Laboraties Pty Ltd. We missing about 500 grams of a particular chemical. Eventually it was found, the Laboratory Manager had put in his briefcase for safekeeping.
I help businesses to save time and improve cash flow
8 个月Thanks for sharing