An accurate stocktake helps you make informed decisions about managing your business. Not only a key part of inventory management, stocktakes are also important come tax time.
It allows your accountant to reconcile physical stock to the inventory records, highlight variances, and identify issues with stock management and control.
With accurate knowledge about stock movements and stock on hand, you can make informed decisions about theft, slow-moving items, damaged stock, technology obsolescence and warehouse processes.
Assuming you have the right inventory management solution for your business, there are several other things you can do the ensure a great result for each and every stocktake. Here are my top seven tips to have a smooth, successful and stress-free stocktake.
Separate stock that’s been invoiced to a customer, but is still in the warehouse. Likewise, stock received but not yet recorded in the books should be distinguished.
Make sure stock held at different locations or on consignment basis is accounted for.
Attach labels to shelves to clearly identify different stock; eg categorise inventory and label inventory not to be counted etc.
If relevant, give stock counters clear guidance on the way they should count, eg start at the top shelf and work your way down, while working from left to right
While it might seem mean to ban the use of mobiles and loud music, distractions can easily lead to errors.
It might seem tedious, especially if you think you have a good idea of quantities, but it’s much better to get a 100 percent accurate record the first time.
Don’t forget to open boxes – just because the carton says there are 24 items in the box doesn’t mean there actually are.
It’s important to check what you have on the floor against what you have in the books.
Make a note about variances and follow up where necessary.
Once the stock take has been finalised, update the inventory records in your accounting package.
A well-planned stocktake will result in minimal disruption, accurate inventory records and provides a basis for making informed business decisions.