Stocktaking, also known as inventory checking, can not only be a good idea but it can actually be necessary. The Australian Taxation Office requires that you do a stocktake if certain requirements are met. If your business deals with buying or selling stocks with a turnover greater than $2 Million you must do a stocktake at the end of the business year. You must also do a stocktake if your total stock value has changed by $5,000 or more over the year. You must be able to demonstrate your stock control to the ATO and this is no easier accomplished than by performing a stocktake. By performing this at least once a year you are in compliance with the government but are also aware of your stock levels and are able to account for theft, personal use or sales.
Key Takeaways:
- If your business buys or sells stock, you usually need to do a stocktake to value your stock at the end of each income year if:
your business turnover is greater than $2 million - Another requirement is that to get out of a stocktake you need to show that you have a reliable stock control system if questioned.
- I would recommend that all businesses do a stocktake at least once a year.
“Performing a stocktake is a valuable method of stock control its the best way of determining what stock has been lost to theft, spoilage or taken for personal use”
Read more: https://www.possolutions.com.au/blog/do-i-need-to-do-a-stocktake
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