How a Good Stock Control System Will Help Your Business Manage Its Cash-Flow and Prepare Stock-Takes
Feb 15 2017
Lots of businesses fail financially each year due to poor stock control. A good stock control system is vital for all businesses and it eliminates a lot of financial strain on the business. Poor stock control will result in the incorrect stock being available for customers in the wrong location, the wrong colour, the wrong size or simply not available at all. However, stock piling results in unnecessary strains on your businesses cash-flow and as we know a lack of cash-flow can end even the most profitable of businesses.
You can purchase many stock control packages and it will depend on your business as to which system is suitable, for example, a sweet shop probably won’t need an automated system to show when 100 grammes of boiled sweets are sold, but a supermarket with over a thousand lines of stock probably needs a point of sale stock control system.
The stock control system you use should be able to produce a stock-take at any given time, when year-end or interim management accounts are prepared as you really must account for variations in stock on a profit and loss account.
Managing your stock control on a regular basis will also identify any discrepancies in your business, it will highlight stock shortfalls which could be a result of staff or customer theft from your business, it will identify items which are not selling as well as you expected and may need to be reduced in price to get the items sold, it will identify items that are selling very fast and you may need to re-stock and it will give you a record of the purchase price of an item so if there is a variation in the purchase price you can easily consider if a change to the selling price in necessary.
For more information on stock taking and stock control, click here to get in touch with Synergy Stocktaking today!