The most useful way of explaining a stocktake is to say that it provides a real time snapshot of your business, which allows you to make key decisions about how to affect change, and improve your profitability and efficiency within the period.
Apart from the obvious – looking after your stock and minimizing wastage – the wealth of information provided can help you look at your business in finer detail, helping you make informed choices for your future. Of course, the stocktaker will also talk you through the report giving you detailed feedback and analysis of what it all means for your site.
Key areas we will report on (subject to available information):
- Gross Profit percentages
- Yields (Stock consumption to cash in the till)
- Allowances and wastage analysis.
- Valuation of current stock
- Analysis of costs
- Analysis of income vs reported income
The First Stock: What Happens?
The auditor will have contacted you and discussed your sites specific needs, agreed what is to be counted and arranged a date on which to attend.
On arrival the auditor will need to see and count what has been agreed. Often, if this is the first count it will take more time and on this occasion they need to:
- Get to know the site and areas that you work in to make sure all the areas are counted.
- Look at your till to see what level of reporting is offered, also how it is set up and suggest any changes that need to be made before the next period.
- Look over your offers or any discounts to make sure these are recorded in the right way.
- Agree allowances with you and make sure you have a wastage recording system agreed and in place.
What is Needed?
To best prepare, the auditor will have begun to collect information before their visit. They ask the client to provide:
- Any online account logins Enterprise/ Booker etc – these will help process invoicing and be the most current pricing.
- Any till logins – most companies who use cloud based systems will offer a specific login for Stocktakers only.
- Retail pricing (if available) – what you are selling your products for.
After the initial visit the client will need to provide/inform of these on each stocktake:
- Invoicing and delivery notes. If Melrose is doing your accounts, and these have been sent to us, we will already be able to access these.
- Receipts and any wet or dry related expenses.
- Wastage sheets and comps. or reports filled out and tallied up into reason and number this is to include and tech issues.
- Sales for the period taking from a combined Z read and reported takings off your sheets.
- Price Look-Up Code report for period
- Tabs, any tabs that have been left open, or need to be dealt with.
- Retail price or product change, noting the date of changes as well.
Melrose Paperwork Processing
If your paperwork is processed by Melrose, it can make its way to the office by a number of routes; this may be by client manager, auditor or post. Once it has arrived our stock team is alerted to its presence, and when needed it is scanned and sent securely to the stocktaker, who will then process it for the stocktake.
On site the stocktaker will need any current invoices that have not been sent, and when processing they will stamp them as seen, so when they reach the office they will have seen that they do not need to be sent.
If you post or have someone collect the paperwork just before a stocktake it may lead to a delayed result. However, stocktakers understand that client managers will ask for all paperwork to be in to the office by 6th of the following month due to MTD (Making Tax Digital) coming into effect next April.