Advantages of Stocktaking

The benefits of stocktaking are many but are all too often overlooked.

Stocktaking can often be viewed as an expense, but weighed against inhouse stocktaking; staff fatigue, low morale, inaccurate counting, and overtime payments, it is professional, accurate, hassle free and headache free.

Instead of looking at stocktaking as an expense, it should be viewed as an investment.

In these days of highly competitive markets, where profits seem to be squeezed from every direction, stocktaking becomes an even greater tool in the essential running of a business.

Many benefits can be attained by using accurate figures i.e.:

Change of Ownership

If a business has not had regular stocktakes and has been using unsubstantiated end of year figures, vendors can often face many unforeseen problems in justifying accounts, as they may not match the expected stock valuation figure when selling the business.

End of Year Accounts

Using accurate end of year stock figures is essential; in making sure that the correct amount of tax is paid on any profits. If unsubstantiated figures are used, you will be unaware as to how much profit you will, or will not actually realise for that year.

Interim Stocktaking and Security

Stocktaking on a regular basis enables you to keep a strict control in the everyday running of the business. Various problems such as overstocking, shrinkage and cash flow can be considerably helped with proper knowledge of your stockholding. By ensuring that the stock that you have purchased has been accounted for through sales, interim stocktakes have been proven to have a positive affect in reducing all aspects of shrinkage.

Conclusion

Your money that has been invested in stock should be treated with the greatest respect; after all it is your livelihood.

If you require any further information on the benefits of stocktaking for your business, please feel free to contact us, without obligation at www.synergystocktaking.ie.