Completing a stocktake successfully
Part two: Use our helpful tips to guide you through your stocktake.
A stocktake is a vital part of running a business. It involves checking and counting products, goods and inventory at hand in your business to determine the value of your stock.
Advantages of a stocktake
As well as meeting your tax obligations, some of the benefits of doing a stocktake can include:
- gaining a better understanding of your stock levels and making sure you don’t have too much or too little inventory on hand
- identifying what inventory you need to buy
- improving your cash flow by identifying and reducing slow moving stock
- detecting theft and gaps in your stock levels.
Costs of a stocktake
As well as benefits, doing a stocktake has costs including:
- accidental damage since people are physically handling your stock
- hiring extra employees to help you with the stocktake
- possible lost income due to taking time to check inventory rather than selling goods and services.
Tips to help you complete a stocktake
Are you fully prepared to do a stocktake? Use this checklist to help guide you through an effective stocktake.
Plan before your stocktake
It can be hard to keep track of your inventory when doing a stocktake. It’s a good idea to plan a stocktake before you start this task. For example, make sure you have stocktake sheets ready to fill in and ensure your employees know what stock to count.
Consider doing a stocktake outside business hours
Sometimes, doing a stocktake during business hours can dissatisfy your customers. Depending on your customers, it can be useful to do a stocktake outside business hours.
Consider having a supervisor at each stocktake location
Doing a stocktake can be complicated. Having a dedicated supervisor at each stocktake location can help your employees complete this task successfully.
Don’t do a stocktake too often
A stocktake can be costly, so it’s a good idea to only do it if it is helpful, like detecting theft or identifying what stock you need to order.
Train and guide your employees
Make sure your employees know what to do and give them what they need to do the stocktake. Provide them with a stock recording sheet, pen, calculator and clipboard.
Consider using casual employees
Consider giving casual employees extra hours to do the stocktake. This can let your other employees serve customers so that your business doesn’t miss opportunities to sell its goods and services.
Find out more:
- Check out part one in the series on Preparing for an end of financial year stocktake.
- Check out the Australian Taxation Office (ATO) website to learn more about stocktakes and tax.