Why your end of year stocktake is so important
Regular stocktaking is one of the best things you can do to keep your business in the best possible shape. It provides an instant snapshot of how your business is doing and helps you avoid any unpleasant shocks at the end of the year when your accountant produces annual figures.
So preparing for the end of the financial year is something you should be working on all year round to help you spot any losses that might be happening. No one likes to think their staff are stealing from them but it pays to be careful. If your staff know that you keep a close eye on stock levels then they will really think twice about stealing from you. As well as theft you may also discover that you are losing stock due to damage which would then be deemed unsaleable and couldn’t be included as stock.
Aside from these obvious benefits to you, all businesses are actually obliged to carry out a physical stocktake at the end of the financial year to complete the balance sheet of your own accounts. Not doing so can not only lead to misreporting profits but can also lead to tax penalties – something any business would want to avoid.
So get your stocktake organised now for the end of the year.
And more importantly do you and your business a favour in 2015. Make a new year´s resolution to getting regular stocktakes done to really help your business reach its full potential.
Then this time next year, you really will have something to celebrate.