In the retail sector, product turnover is high and failing to do a regular stock take will result in a lack of understanding of your true position in the market.
We advise that you make a physical stock take monthly or bi-monthly to allow accurate profit trends to be calculated and minimise theft. Hand held bar code scanners has improved the ease, convenience and accuracy of what can often be a laborious task.
For high value, low margin items in your convenience store such as tobacco, lottery, etc., checks should be conducted on a daily basis. Scratch card sales can be easily checked as the cards have a serial number. Checking that the difference in serial numbers is equal to the number of sales recorded in the POS for a day is easy to do.
Regular stocktakes allow you to measure an accurate idea your financial position as well as monitoring the following entities:
Regular stocktakes will enable you judge if stock is being taken by shoplifters or staff. Where margins are low and sales volumes are high, regular stock takes are essential to make sure that stock is not being stolen.
2. Calculating profit margins
Cost price and recommended retail price can both vary over time; coupled with stock lost though damage or theft. Accurate profit margins can only be established if stock levels have been counted at the start and end of a period.
3. Automated ordering
To benefit fully from automated ordering it is not good enough to rely only on the stock levels calculated by a Back Office System. The data in the system is often inaccurate due to incorrectly entered delivery data and failure to adjust for damaged and out of date goods. Taking regular physical stock takes, taking into account damage and theft and feeding this back into the Back Office System will help to ensure that automatic ordering does not lead to over or under stocking.
4. Statutory Requirements
For convenience store retailers, most accountancy regulations require inventory levels to be determined once a year for annual tax returns.