The benefits of stocktaking are many but are all too often overlooked.
Independent 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.
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.
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.
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 effect in reducing all aspects of shrinkage.
Your money that has been invested in stock should be treated with the greatest respect; after all it is your livelihood.