Stock Take - Should every item be counted?

KellyH23
KellyH23 Registered Posts: 2 New contributor 🐸
in General accounting discussion
Hi all

I am due to head my first annual stock take in July. Currently the business practically shuts down for up to 7-8 working days which I think is excessive for the size of the company. It is wholesale so the warehouse is split, one for bulk one for picking area. The bulk is counted when delivered and then packaged on pallets until needed.

I would like to conduct stock take over a weekend to limit the time the business is closed but seems unlikely this will be possible given the length of time it takes at the moment.

Do we really need to count all the bulk? I think time could be saved here but confused as to if this would be acceptable?

Any help would be appreciated. Thanks

Comments

  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    KellyH23 wrote: »
    Do we really need to count all the bulk? I think time could be saved here but confused as to if this would be acceptable?

    I think only yourselves know this, and maybe a discussion with what your auditors would be happy with.

    I put estimates in for some groups of items, that would be time consuming to count, and total value not material.
  • jamesm96
    jamesm96 Registered Posts: 523
    For what it's worth, I've often taken the view for bulk items that, if it's still sealed from the supplier, you can rely on the quantities marked on the packaging. Obviously if there are signs of damage then you might want to be a little more investigative, but, otherwise, if the stock is delivered in boxes of, say, 100 items, and there are 10 boxes on a palette, and two rows of 10 palettes per row, just multiply it up! (Which I'd make 20,000 units!)

    Kelly's absolutely right though - ask your auditor. Unless I've misunderstood and you're from the auditor, in which case speak to a senior colleague.

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