The Need for Stocktaking.....

The first thing to be said is no business is too small to employ the services of a Stock/Auditor.Monthly stocktaking should be encouraged but sometimes this can be determined by both size and turnover. With so much "red tape" these days, every business needs to know what gross profit they are achieving. Conscientious business owners will also want to monitor the Bar and Food operation to ensure "leakages" are not occuring. Unsatisfactory gross profit levels can lead to enquiries by HM Revenue and Customs being initiated, which can result in substantial fines, penalties and repayments or in the most serious cases, imprisonment. Losses from a business can result through a variety of reasons including, the use of incorrect measures, incorrect glass size, failure to look after beer and dispense systems, Incorrect sales figures, delivery shortages, theft of stock, theft of cash.... The list goes on! Too many businesses wait until the end of the financial year to find out their true profit margins. This is a practice not to be recommended or advised, a considerable amount could have been lost during this period. The practice of regular and accurate stocktaking could have detected any problems at an early stage thus enabling swift action to be taken and any problems remedied. Trading accounts (over variable periods of time) will only show the business the gross profit being achieved. The use of computorised extended results are much more complex and informative. Extended results show not only what gross profit has been made but also what "should" have been made, they also show a retail figure of any surplus or deficit. By using the extended system the stocktaker can monitor the gross profit of individual items and highlight such areas as "overstocking" and control the entire operation professionally which ultimately is beneficial to the business. Dont wait until things are too late, mantain regular and accurate stock/auditing for both the Bar and Food operations of your business......

Copyright | P J Kershaw 2016