Preparing for a Stock Audit

A good stock audit will provide your business with key business data, potentially identifying opportunities and minimise your losses which could result in you saving a lot of money.

To maximise the results of your stock audit and to ensure that you get the results on the day of the audit, it is important to ensure that the key information required by a stocktaker is available at outset.

Information your stock auditor will need

Your stock auditor can only work to the information set in front of them and so the sort of information to have ready includes:

  • Details of business done, may well be cash, credit card payments and ledger balances. This should then be compared with some sort of till report - discrepancies could highlight a cash problem.
  • Details of goods bought into the business. This would include delivery notes, invoices and statements along with petty cash payments. All have a part to play in ensuring that accurate reports are produced using up-to-date and valid information.
  • Details of any goods not sold for the full retail value - this would include line cleans, wastage and any drinks given away by the business for hospitality. Goods sold at a reduced price must also be recorded so an 'allowance' can be made for the sales price difference.

 

Till reconciliation

If available, a full till report may be used to produce a till reconciliation – a process that enables losses not only to be quantified but to be allocated to particular products.