Business.gov.au are publishing an article series on completing stocktakes.
So far, Business.gov.au have published two articles, the first on completing a stocktake for tax purposes, and the second on helpful tips to guide business owners through a stocktake.
The first article emphasises the fact that if a business buys or sells stock, they may need to do a stocktake for tax purposes. The article goes on to state that a business may be legally required to do a stocktake if either its annual income is more than $2 million or the inventory level has changed by more than $5,000 since the last financial year.
The second article emphasises the advantages and costs of a completing a stocktake, and provides tips to help business owners complete it.
The advantages of completing a stocktake include: gaining a better understanding of stock levels in the business and knowing what needs to be ordered, improving cash flow by identifying and reducing slow moving stock, and detecting theft and gaps in stock levels. The costs of completing a stocktake include: accidental damage, hiring extra employees, and possible loss of income due to the time it takes.
The tips that the second article provides include: planning before the stocktake, doing a stocktake outside of business hours, having supervisors at each stocktake location, only doing a stocktake when its absolutely necessary, training and guiding employees, and using casual employees.
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