Are you a new businessman who is having problems in this early stage of your business? Are you looking for possible solutions and ways to become more in control of your resources, products and other factors which are essential to your success? If you answered yes to these questions, then you should pursue stocktaking.
This business process is also referred to as taking inventory, or simply counting. You may not consider it important, but being updated with your company’s current amount of stocks is crucial to its success. You have to know when exactly you do need to replenish your products and materials to continue your operation, production, or sales.
If you want to know more about stocktaking, then here are several stages you should look at:
- Physical counting of items – More often than not, physical counting is used in a variety of businesses, companies and other kinds of enterprise. This will include inspection of the quality, quantity, and appearance of the items which are counted.
- Identifying the value of certain products – Valuation of items is also important so you would know how much stock you have left for a particular period of time. You will also be able to determine whether a specific item sells well or not.
- Getting documents from suppliers, contractors, etc. – Obtaining files and checking documents from suppliers and contractors ensures that you have all the stocks which you should have based on transactions. Any loans, credits, receivables, and liabilities should also be addressed in this stage.
- Comparing records – Here, the stocktaker compares the current data with other records in the past. This is helpful in order to analyse any particular trend that can help improve the business’ operations or sales.
- Identifying and explaining losses – Whenever an item or a group of items comes out missing, the stocktaker should know and explain the situation. In this stage, supply and warehouse managers may become accountable due to financial losses.
- Recommending ways to improve inventory – Once everything is checked and accounted for, recommendations will be presented by the professional. As the business owner, you will have the final say when it comes to these proposed changes. But remember that these suggestions are made in order to help you build a stronger and more stable company.
As you can see, there are a number of stages in a stocktaking process, though there may be a couple more in certain situations. In these kinds of methods, it is important that you are not just familiar with it. As the business owner, you should be able to seek ample help from professional service providers and other similar accounting firms.
Looking for an accounting firm within the United Kingdom is not that difficult nowadays, especially with the help of the Internet. You just need several minutes to spare, some patience in conducting research, and you are good to go. There are three basic things you should check: the experience, specialisation and professionalism of the staff. If all these conditions are met, then you can proceed with your inventory.