Stock problems

[Deleted User]

Hi

I have been speaking to a potential client but the job seems to be turning into a nightmare.

He sells clothing from a shop but hasn't kept track of his stock movements since he started 18 months ago. His return is already late and I have no idea of how to get a stock figure at any given moment in time.

I created a workbook which will give me all the information I need but he is reluctant to fill it out as he doesn't have the time and can't afford for me to do all the inputting. He also has nobody else i.e. family that can do it either.

I have absolutely no idea how to get this stock figure for the return.

Monsoon

The bottom line is that if he can't do it, and won't pay anyone else to do it, the stock figure remains a mystery.

Impress on him the fines, penalties and interest he will incur if this isn't submitted soon. Put it in writing too, what you need and what the consequences might be if you don't get it.

It sounds like you know how to get it - get him to fill in your workbook. He's the one who knows his system and how it works, so he is the ideal one to do it, unless he pays you. If you can't get a perfect stock figure (sounds unlikely) you need a best estimate, and a way to get it more accurate going forwards.

Ultimately it is his return and there is only so much you can do. You can lead a horse to water, but you can't make him drink.

But you knew all this anyway, didn't you? Don't stress. Be helpful but firm and don't take the heat for it being late, it's not your fault.

[Deleted User]

Thanks.

I'll already told him about the fines but he isn't bothered. I can't even estimate the stock unless he fills in my workbook which he said he can't do because he doesn't have the time and he can't afford to pay me to do it.

Monsoon

Don Juan wrote: »

Thanks.

I'll already told him about the fines but he isn't bothered. I can't even estimate the stock unless he fills in my workbook which he said he can't do because he doesn't have the time and he can't afford to pay me to do it.

2 options:

It doesn't get done. Invoice him for your work done to date and you will have to leave it on the 'pending' pile.

Alternatively complete the return with an estimate, say it's estimated on the return, fill in the white space to say why it's estimated and that the estimate won't be corrected. Tell the client that his chances of enquiry are now significantly higher (as he won't keep proper records).

If he gets the stock figure next year, it will all come out in the wash with only a slight +/- tax due to differing tax bands across the 2 tax years.

If he doesn't care about the fines and can't afford to pay you to do this additional work - will he be paying tax anyway and will he pay your bill?! Do you need clients like this?

[Deleted User]

As his year started in Jan, I am going to get him to have a short year upto end of March to fall inline with the tax year. That's only 3 months worth to do for now which gives him until near January to complete the sheet from Apr 09 - Mar 10.

That's the best I can do for him.

I will wait for his reply.

aatmember

Your client must have an idea as to what their gross margin is? If they know this and you know what their salers figue is you should be able to have a stab at his stock level is.