Preparing for the end of financial year stocktake
Part one: completing a stocktake for tax purposes.
Are you ready to do a stocktake at the end of this financial year? If your business buys or sells stock, you may need to do a stocktake for tax purposes.
Stock is anything that your business makes, buys or gets for trade or to change into other products and goods. It’s also known as trading stock, inventory stock or inventory.
What is a stocktake?
A stocktake involves counting and checking all products, goods or inventory in your business to make sure your records are accurate and correct. A stocktake lets you work out the value of your stock at the end of financial year for business or tax purposes
To do this, you need to:
- work out how much stock you have
- determine a monetary value for each item of stock.
Do I need to do a stocktake?
You may legally be required to do a stocktake for tax purposes if either your:
- annual income is more than $2 million
- inventory level has changed by more than $5,000 since the last financial year.
Check out the Stocktakes page on the Australian Taxation Office (ATO) website to learn more about stocktakes and tax.
What to do…
- Read the Queensland Government’s Keeping track of your stock page for more information about doing a stocktake.
- Speak with your accountant, lawyer or a qualified business adviser for help and advice with managing your inventory and whether your business is required to conduct a stocktake.
- Check out our Inventory management information for more tips.