Stocktaking has been given importance by different food and beverage businesses nowadays. The primary reason for stocktaking is to identify early wastage and subsequently reduce it to the minimum. This will allow businesses to have efficient operations gaining the expected profit and achieving excellence in the service.
The definition of stocktaking has been already clearly explained, that is why many businesses see its significance in attaining success. But there is more to know and to understand about stocktaking, which can help you in running your business well.
There are various types of stocktaking and they are used at various times, some more, some less. These types of stocktaking occur on different occasions, thus you need to know when each type of stocktaking should be done.
When Does Stocktaking Occur?
Businesses have their own distinct requirement for stocktaking and each of them vary from one another. The time when stocktaking is carried out occurs differently from one business to another. The following are the different types of stocktaking that can be used:
1. Daily or End of Shift Stocktaking— can be done one-off or every day. This type of stocktaking is considered as the most accurate means to view the changes that occur with your stocks. It is also the choice when you have to identify any issues with your products. Stocktaking is done right after the shift or during business hours for more accurate results.
2. Weekly Stocktaking — is another type of stocktaking, which can provide accurate results. Stocktaking is done on weekly basis to identify the troubles associated with your products and to be able to fix any issues promptly. This can be used together with Line Checks for more efficient results.
3. Monthly Stocktaking— if you have a good track record of acceptable wastage levels, just like any small business has, then this type of stocktaking can be more applicable for you. Monthly stocktaking can give you a general picture of how your products perform. This type of stocktaking is perfect for small businesses.
4. Annual or Quarterly Stocktaking — needs to be done when preparing your accurate profit and loss statements, annual accounts and tax returns. Annual or quarterly stocktaking is a requirement for all types of businesses, to be able to determine the profit gained for the year. This will help you determine whether you have efficient management of stocks. If the result is unsatisfactory then you have to change your stock management methods or address any other issues that could have caused this.
5. End of Lease Valuation — if you are to sell your business, then the end of lease valuation stocktaking would be performed by the external auditors, to determine the monies applicable between the two parties.
6. Line Checks — after finding a problem with a certain product, during your daily or weekly stocktaking, line checks are used to check stock levels of the particular product to overcome the issues. It can be done for a single or group of products before, during or after the business hours.
Determining when is the best time to do stocktaking can improve your business’ operations. You can choose from the different types listed above, depending on your business’ requirements. But it is best to practice 2 or more types of these stocktaking methods. Combination of these stocktaking methods allows you to monitor and control your stocks better.