Hoping someone can fill in a bit of a knowledge gap: It's tax time and there are stocktake sales all over the place. My understanding is basically: companies discount products to reduce the amount of stock they need to count then something happens and then the company pays tax. Can someone fill me in?
It's more along the lines of what is not sold is not tax deductible. Stock is recorded as a CoGS (Cost of Goods Sold) which needs to be adjusted for stock that has not yet actually been sold by EOFY. The stock that isn't sold is considered an asset which is not tax deductible. Usually preferable to sell it than write it back into the Balance Sheet. Also good way to keep track of what's being stolen, damaged, what's actually in stock etc
True. I thought that for businesses that uses RF scanners, this would be easier to conduct. Since movement of stocks are recorded right there and then, but then the machines are just as good as the people who uses them. So human error can also come into play and this can actually cost more work than done on manual stock movement logs. This is where stocktake can really come in useful, i think if done quarterly this would be more efficient but conducting one is time consuming and can be quite expensive.
So did I, all the tech out there and they still do something as manually intensive as a stocktake. And having done a good few stocktakes in my younger years... It's not particularly accurate going on the lack of care I've seen from staff. I've heard DJ's budget for $100k loss due to theft! Can't remember if it's per quarter or per year but could easily be the former with their turnover.
Big box retailers are now doing rolling Stocktakes throughout the financial year to keep track of area's of stock loss etc,50 stores per qtr in the business I work for
Most retailers do stocktake sales that have absolutely noting to do with a stocktake. A real stocktake is a accounting process intended to identify variance (loss) of stock and adjust for obsolescence, revalue etc An advertised stocktake is usually run by marketing people and intended to grow sales. Ditto Fathers Day, Mothers Day, Easter, XMas, Australia Day, Halloween etc
