Stocktaking is counting the inventory of the business on hand. For every financial year, it is expected of business owners to complete a stock take. Owners should count the inventory to conclude every financial year. This will give an exact representation of the value of assets of the business and let them know of any diversity between the actual stock and their records. It is essential in the business to have an accurate idea of your stock items.

It allows the accountant to gather information about the inventory records and highlight variances. It can also identify issues with stock control and management. With definite knowledge about the movements of your stock, you will be informed and create decisions about damaged stock, warehouse process, items which are slow moving, technology obsolescence and even theft. Here are tips for efficient and successful stocktaking.

1. Identify what stock items are owned by your business.

You should identify what stocks you need to count and where it is located. Separate stock that has been implicit to customers, but is still on the warehouse. You should distinguish the stock received which is not yet recorded. Make sure to hold the stocks in different locations.

2. Make the stock room tidy and clean.

Make sure that the stock room is tidy and clean. The items must be laid out clearly. It is better to attach labels to each shelf in order to easily identify the stocks. You can categorize the inventory and list those that are not to be counted. You should clearly guide the stock counters on the way on what and how they should count. Make sure that everyone knows how to operate the system of your records. Example of it is staring at the top of the shelf then working their way down working from right to left.

3. Use different tools in stocktaking.

a. Stock sheets- Do not include the recent number of your inventory on hand. If the inventory has barcodes, make sure that the barcodes are clearly written.
b. Write-off sheets- You should check the condition of each inventory as you are counting the item.
c. Different Colour Pens- You should use different colors of pen in stocktaking. The trail of the audit can be followed easily if the counters use different colors.
d. Calculators and Scanners- It is used for inventories which are bar coded.
e. Avoid using mobile phones, iPods, radios and idle chit chats- These materials can lead to distractions while stocktaking. It will lead to mistakes or errors.

4. Do not just estimate.

Make sure to count the products in your inventory. You need to be more accurate on the quantities of the items. Open the boxes and check the number of items inside because you might be mistaken about the accurate number by just referring to what is stated on the label of the box.

5. Update the records.

Once you have already finalized the stock take, make sure to update the records of your inventory. It will result in more accurate records and minimal disruption.