Why Use a Stocktaker?
What can a stocktaker do for my business? After cash, the most valuable and vulnerable asset is your stock. A regular stock take will ensure that any shortages, thefts or wastage are quickly highlighted, enabling action to be swiftly taken to minimise any loss. The stocktaker is on site many times during the year providing up-to-date information on the state and profitability of the business. This contrasts markedly with the end of year accounts prepared by the accountant, which must be viewed historically. A competent stocktaker can also offer advice based on many years experience analysing what the figures mean to your business.
Why Use a Qualified Stocktaker?
In the coming years it is going to be even harder to make your business pay and you need all the help that you can get. The Institute of Licensed Trade Stock Auditors (ILTSA) is the only qualifying body for stock takers within the Licensed Trade, with members throughout the UK, the Republic of Ireland and Europe. All ILTSA qualified stocktakers have proved their ability through professional training and extensive qualifying exams. Look for the letters MILSA/FILSA. The costs of using a qualified and professional stock auditor are often covered many times over by the savings that are possible.
What does the Stocktaker need from you?
The accuracy of the figures provided to you by the stocktaker, rely directly on the following:
What can a stocktaker do for my business? After cash, the most valuable and vulnerable asset is your stock. A regular stock take will ensure that any shortages, thefts or wastage are quickly highlighted, enabling action to be swiftly taken to minimise any loss. The stocktaker is on site many times during the year providing up-to-date information on the state and profitability of the business. This contrasts markedly with the end of year accounts prepared by the accountant, which must be viewed historically. A competent stocktaker can also offer advice based on many years experience analysing what the figures mean to your business.
Why Use a Qualified Stocktaker?
In the coming years it is going to be even harder to make your business pay and you need all the help that you can get. The Institute of Licensed Trade Stock Auditors (ILTSA) is the only qualifying body for stock takers within the Licensed Trade, with members throughout the UK, the Republic of Ireland and Europe. All ILTSA qualified stocktakers have proved their ability through professional training and extensive qualifying exams. Look for the letters MILSA/FILSA. The costs of using a qualified and professional stock auditor are often covered many times over by the savings that are possible.
What does the Stocktaker need from you?
The accuracy of the figures provided to you by the stocktaker, rely directly on the following:
- Access to all stock and clear indication of all areas that contain relevant stock.
- Full information regarding loaned stock, line cleans, wastage, staff allowances, breakages, price alterations, happy hours, promotions and any stock that has not been paid for at normal retail levels.
- Actual site of all delivery/credit notes, invoices, statements and price lists.
- Where applicable an itemised till report of all products sold during the stock period. Nb you do not necessarily need an itemised till to provide accurate stocktaking as the till is only as accurate as the staff who operate it.
Too much and it risks draining your cash flow, much harder to control and can cause increased wastage. Too low and you run out of stock items risking loss of trade or buying on impulse.
How does that compare with similar businesses and is it the maximum that can be attained? Often a 3% variance in gross profit can mean the success or failure of a business. A good stock auditor will explain the implications of the estimated, as well as the actual gross profit percentage.
Often the stock auditor will be able to give pertinent advice on prices in a particular area and how to maximise profits.
Again if the yield is not set correctly it can greatly affect the overall bottom line profit.
All too often poorly performing bars operate ‘happy hours’ with little or no thought of the full implications to the profit. Providing entertainment needs to be carefully costed out so that it generates more profit rather than adding to the costs of the business.
In the last couple of years if prices have not been increased correctly, margins have been greatly squeezed – it is then extremely difficult to maintain margins in future years.
It is very easy to under declare allowances resulting in a deficit or alternatively and much more commonly cover up a loss by making excessive allowances. Both can have serious repercussions.
Often a small surplus is accepted, where in fact a much higher figure should be possible.
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