Why Is Stocktaking Important?

Stock taking can help your business optimize productivity, increase profitability, and highlight major areas of weakness such as damaged products, obsolescence, and even theft. Stock taking therefore is essential to be carried out, whether it is done annually, half yearly, quarterly, or monthly.

There is variety of reasons why stocktaking is so important. Whether your business is large or small it pays to carry out regular stock takes, of your inventory. What does stock taking mean. It is physically verifying the quantities of an inventory and the condition of those items, i.e. if they are damaged, as a basis for audit and valuation of stock. If your business is rather large, you may need the assistance of stock taking consultants, as they will help you reduce loss, lower waste, while also helping you increase your gross profit.

There are reasons why regular stock taking will make your business profitable. One is that it will help you uncover theft. It is an unfortunate reality that theft is a common occurrence in today’s business, and a stock take will highlight this issue. Regular stock taking will also discourage employees from stealing. A regular stock take will also highlight issues such as damaged stock, or unprocessed orders. If these are kept tabs on, you can make sure that it will not happen again. You can also make sure that your business is meeting its targets. If you spot a major disparity in your numbers early on, you will be able to take steps to readjust your forecasts. Regular stocktaking will also improve your stock ordering process, as it will highlight shortages that you weren’t aware of, and will encourage you to order more products. Finally regular stock taking will also help you find faults in your pricing strategies. These are good reasons for regular stock taking, and why regular stock taking is good for your business as it will increase productivity and profitability.

Stock taking companies can help you by advising you on pricing, wastage, pilferage, cleaning and gross profit. These companies also provide many other similar services, such as conveyance, taxation records, on the spot valuations of stock-in-trade, and stock control. These companies offer their services for a range of retail shops, including supermarkets, restaurants, liquor stores, hardware stores, and warehouses. Some businesses may not require a full inventory of stock, but a simple valuation of stock, which can be quick and economical for businesses with large inventories. These companies will also dispense the service of experienced data processing operations, which will help you enter your stock taking results into your computer system, if you ever need computerized records of your inventory.