The Advantages & Types of Stocktaking
Aug 17 2018
What are the types of stocktaking?
Having appropriate software is the best way to carry out a stock take. This is because daily reports can produce real-time information. Although it can be expensive, the advantages are plentiful. There are other stocktaking methods including:
- Periodic stocktaking is conducted at the end of an accounting period. With this method, records are not kept up-to-date. For example, inventory is only recorded on a set periodic basis.
- Spot checks can be at set times or random times. This method involves manual checks. For example, checking the cash in the till or the inventory in the stock room. This is to ensure that there are no discrepancies between the amount of money in the till compared to the amount of inventory in the stockroom. Spot checks are also great if you suspect theft is occurring.
- Stock out validation happens when stock levels have become dangerously low.
- Annual stocktaking is done in the last month of the financial year. In some circumstances, it may require premises to close for a few days.
The importance of stocktaking is clear. It allows you to regularly monitor and increase gross profit, reduce loss, improve control of allowances, and reduce waste. Traditionally, stock reporting was carried out on one day, the numbers crunched over the next couple of days, and then you got your results a few days (sometimes a week) later. With a decent (preferably electronic) stock taking method, you get same-day reports, and with epos and back office systems, you can even get live, real time reports.
If you have back office software connected to your tills, the reporting of sales, staff transactions, and stock movements highlights anomalies quickly. Which means that you can get to work finding out why money is missing or stock levels are down.
Receiving real-time data this way allows you to be proactive and responsive to the current needs of the business.
With a slower method, you’d have to wait until your next stocktake to find out if you had fixed a problem, but with same day reports you can implement changes and find out whether the changes have worked the same day or over a much shorter period, helping to rectify issues much quicker.
If you are looking for stock taking advice for your hospitality business, Synergy Stocktaking can cater for your needs.