Today is the first day of the new financial year, whilst you maybe excited about starting the new financial year with new goals and ideas for your business there is one small thing that you still need to complete before starting your new year.
Stocktaking your inventory is a vital part of your business, here are some tips of why you need to stocktake your inventory:
1. Gives you an exact figure of how much finished products, raw materials and packaging materials that you are currently holding;
2. The Closing Stock has an effect on both this year’s and next year’s income tax return;
3. Helps you understand the movement of your products once you enter your data and compare it to you sales;
4. Take the opportunity to write-off stock that is either obsolete or out-of-date;
5. Use this opportunity to determine what sells well and what the customers want. It may mean that you spend money/allocate resources on the things that will make money rather than the things that don’t;
An example of a stocktake using excel would be
AS AT 30 JUNE 2014
STOCK CODE STOCK ITEM NUMBER ON HAND COST PER ITEM TOTAL VALUE
This spreadsheet can be then given to your accountant who will help you with writing down or writing off stock.
A copy of this spreadsheet can be obtained by Marked Focus. Some of the tips have been provided Marked Focus who specialise in tax consultation, mortgage broking, business accounting, bookkeeping and more. Call (03) 5996 1990 to book a consultation with one of their specialised consultants.
Would You Like a Free Review of Your Tax Return
Were you unhappy with the result of your tax return? If so, we can provide a free review of your last income tax return (valued at $120) To take up this offer call 03 5996 1990.