Importance of Stock Taking
Stock refers to the supply of goods available for sale or distribution. Stock-taking is the physical counting and verification of items, a business has in its store, warehouse, or outlet.
Stock-taking can be done daily, weekly, monthly, quarterly, or even yearly, depending on many factors, like the size of the organization, manpower available, location of the store, etc.
The practice of stock-taking has become a standard business control procedure, and here are some reasons why;
1. Stocktaking enables the organisation to ascertain the actual stock in the store.
2. It enables the organisation to ascertain stock discrepancies or fraud in the store.
3. It enables the organisation to have an actual accurate stock list.
4. Stock-taking usually exposes goods that are prone to damage, rust, rot, etc.
5. Stock-taking ensures that the maximum and minimum stock levels are strictly maintained, so as not to put the organization into financial difficulties.
6. Stock-taking can be used to find out, early, whether a business is achieving its financial goals.