As we approach the end of the year, many business owners will also do the dreaded task of stocktaking. Even if it’s often the last thing business owners want to do, stocktaking is a crucial and beneficial part of running a business.
Every business must perform stocktaking at least once a year to ensure an accurate stock count and value since this directly impacts your business’s profits. While one stocktake a year is okay, preferably at the end of a financial year, having smaller but more regular stocktakes is recommended.
What is Stocktake?
A stocktake is a process of counting stocks on hand to ensure that what’s recorded or registered in your books is correct or accurate.
Most businesses have inventory management software or tracking system for this. As soon as new stock comes in, it’s checked off in the inventory management system. It updates the number of stocks on hand whenever new stocks arrive or when items are purchased. Smaller businesses may have to do their stocktake manually.
What’s the Point of Stocktake?
In the fast-paced world of retail, there will be times when the actual stock on hand doesn’t match what’s recorded on the inventory management system. It can be due to several reasons, like theft, human error (employee forgetting to record during peak periods), or system issues (system suddenly crashing and failing to record incoming or new sales).
But if you regularly perform stocktaking, you can detect any inconsistency in your inventory and rectify the problem ASAP.
What are the Benefits of More Frequent Stocktaking?
You’re breaking down the significant task of stocktaking into something smaller, quicker, and more manageable.
One way to do this is by categorising your stock in your inventory management system so you can easily track, review, and analyse them.
Because your stocktake is conducted frequently and regularly, you’re guaranteed an accurate count for your stock on hand. You can ensure no losses due to theft or recording errors. If there are any discrepancies, they’re also easier to spot and investigate when you’re using an inventory management system.
With stocktaking, you can see how your business is doing in terms of sales through your inventory, ultimately helping you make better purchasing decisions.
Better Stocktaking: Some Tips to Remember
There’s no one way that will work for every company out there. Still, there are many ways you can improve your stocktaking, like the following:
1. Switch to Barcode Scanners
Manual scanning is prone to error, so use a barcode scanner to reduce these human errors. Plus, you can quickly record and update your stock information and scan larger amounts of data in one go.
2. Maintain a Clean and Organised Warehouse
If you don’t want to deal with the messy issue of theft or missing stock, strictly enforce only authorised entry to your warehouse or where you keep your stocks.
Moreover, label everything to help differentiate products and categorise items.
Lastly, have a workflow process in your warehouse or store to keep things moving efficiently and reduce errors or mistakes.
3. Remove Distractions
Things like smartphones, loud background noises, and a sudden deluge of people can distract anyone, leading to missing out on vital details. It may be harsh to not allow smartphones on the premises. But if it means being able to concentrate at work and finish tasks quickly and accurately, then it’s something worth implementing.
4. Opt for Inventory Management Software That Does It All
Choose an inventory management software that allows you to check stock levels and update them automatically and in real time. Automate your entire process to manage your inventory better, operate more efficiently, and sell more. Be one of the thousands of product sellers and retailers worldwide who use Cin7.
Learn more about the benefits of Cin7’s connected inventory management. Call, message, or email us for inquiries or to request a demo.