The end of the tax year is quickly approaching! For those businesses with trading stock, please ensure you have completed a physical stocktake of your inventory, as this is required for tax purposes.
Completing a physical stocktake is not only a tax requirement but also a valuable opportunity to assess the state of your inventory, identify discrepancies, and make informed decisions for the upcoming year.
Stock or inventory on hand is generally calculated at cost unless your stock is thought to be worth less than what you originally paid. Also, no physical stocktake is required if the stock on hand is reasonably estimated to be worth less than $10,000.
To assist you in ensuring a precise and efficient stocktake, we've curated some helpful tips below as you prepare for your inventory count: Tips for a Successful Stocktake
Choose Your Timing Wisely: Schedule your stocktake well in advance, allowing time for staff training and preparation. Ideally, you'll want to run your stocktake outside of business operating hours so you and your staff can focus on the job at hand. If your business is closed over the weekends, this could be the opportune time to perform your stocktake, but if this isn't possible, schedule your stocktake during a period of low business activity to minimise disruptions.
- Organise the Inventory: Prior to the stocktake, ensure that your inventory is clean, organised, and easily accessible. Group similar items together and label shelves and bins accordingly.
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Accuracy: Ensure that all transactions, including receipts, deliveries, and adjustments, are accurately recorded in your inventory management system leading up to the stocktake date.
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Develop a Systematic Approach: Divide the stock-taking process into smaller tasks, assigning specific areas or categories to individual team members. This helps minimise confusion and potential double-counting.
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Establish Counting Procedures: Define clear counting procedures, including how to handle damaged or defective items, how to record quantities, and how to address discrepancies. Consistency is key to accuracy.
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Use Technology: Leverage inventory management software, barcode scanners, or mobile apps to streamline the counting process and improve accuracy.
- Allocate Sufficient Time: Avoid rushing the stocktake. Allocate enough time to ensure a thorough and accurate count.
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Prepare the Tools You Need: Finally, make sure you have all the tools required for the stocktake ready to go. If you’re conducting the process manually and on paper, we recommend clipboards, stock sheets, write-off sheets, pens, and calculators for each pair of stocktakers.
Once you've completed the stocktake, please forward us a copy of your stock on hand report as at 31 March 2025.
If you have any questions about the valuation of your inventory or other inventory-related queries, please contact the team on 04-970-1182 or send us an email to admin@aafl.nz. Kind regards, The All Accounted For Team |
