Your stock is your ‘Unrealized Profit’. Any shortage, theft in Stock directly affects your profitability.
Inaccurate information of stocks may lead to Extra or Short Inventory.
Such deceitful shortage will force you to send your customer to return back.
Excess of Inventory will be a unnecessary burden on your cash limits.
To avoid such incidences, you need to have 100% correct information of your stock levels.
You must have a system in place to verify whether the stock levels as shown by your software are true or not.
Importance of Stock Taking:
- You don’t miss out a sale:
You know what’s in the Stock and what’s out. Accurate stock reports will help you to know what’s low &
what’s been selling fast.
- Stop waste of Cash:
You can spend cash wisely by knowing movement patterns of your stock. You can stop spending on slow
moving items & use this cash to increase your product range.
- Improve accuracy of Accounting:
If you maintain accurate Inventory, your accounting will be up to date.
- Keep Control:
Watching inventory closely at regular intervals will help you to spot the issues well in time & before they
damage your balance sheet.
- Customer Service:
You have most authentic data while you say yes or no to your customer. This increases Trust.
- Efficient re-ordering:
What a pleasure, now you know what to order and how much to order.
- Minimize Theft & Losses:
Your losses owing to thefts, shortages are reduced to a great extent.
Why ‘Third Party Stock Taking’. ‘Third Party Stock Taking’ is a relatively new concept in India. Many a times, physical stock verification is done by the people who are handling it on daily basis. In such situation they take many things for granted and are inclined to make adjustments with the truth. This leads to false information. ‘Third Party Stock Taking’ avoids such mistakes as the auditors have no role or interest in the daily routine of the Store or the Warehouse. They do not have any ‘hand-in- glove’ relationship with the stock-keepers. This enables them to report what they see.