CDP & Co are reminding all business clients that need to prepare to do a stock take on the 30th June 2018 the time is HERE.
Physical stocktaking is the process of counting, weighing or otherwise measuring all items in “Stock” and recording the results.
The reasons for doing this are as follows:
- To verify the accuracy of the stock records.
- To support the value of stock shown in the balance sheet by physical verification.
- To disclose the possibility of fraud, theft or loss.
- To reveal any weakness in your processes for the control of stock.
The size and number of surpluses and deficiencies revealed by stocktaking is a good measure of the efficiency of store keeping, control and procedure generally.
Stock Inventory accounts are reported as current assets on the company’s balance sheet. These accounts are used for internal analysis as well as external financial reporting so it is important to make your stock take as accurate as possible.
If you have any further queries regarding this, please call our office to discuss.