For businesses that sell goods physically and have goods stored somewhere. It is more critical than ever that they are familiar with stock and inventory audits. And how regular inventory analysis can effectively prevent fraud, improve inventory management, or even increase revenue for their business.
Running a stock audit is an essential procedure for organizations such as e-commerce and retailers. From time to time, they need to make sure that the goods they have stored match what they record in their sales and inventory records eventually.
Still, businesses struggle to find the right time for running stock and hiring the best-fit accounting partner who can manage the audit hustle with greater transparency and trust.
What is a stock audit?
Raw materials and stocks are crucial valuable assets that require repeat monitoring. Organizations that operate with multiple locations and channels may face difficulties maintaining the accuracy of the stock records.
Stock audit or Inventory audit includes verifying the available stocks and assessment of the inventory, which is done physically. The goal of conducting a stock audit is to ensure the security of investments and funds. To keep the information updated related to the quantity and the quality of goods stored in your stock or inventory.
Stock audit for small businesses?
It is possible to perform stock audits internally as well as through third-party auditors while maintaining complete transparency in the audit reports. As a business owner. You have options to conduct an inventory audit yourself or hire a professional audit agency in your area.
What stock audit benefits are offered to an organization?
- Reduced cost and bottom-line improvement.
- Prevention of pilferage and fraud.
- Accurate information on inventory value.
- Reduced gaps in the inventory management processes.
- Special arrangements for third party opinion
What is a stock audit report?
Stock audit and inventory item reports help the auditors check the available stock item details for the current financial (Audit) and compare reports with the previous year’s stock audit report.
Stock Audit verification Process
- Report Flash
- Scheduling Stock
- Location Barcoding
- Global Counting
- Uploading of Scans
- Variance Analysis
Why Stock Audits are necessary?
Although, a stock audit is a non-compulsory process that helps keep control for a business. It is a critical step for business owners. Concerned about preparing themselves for the most problematic and stressful scenarios. And manage audit-like situations while having a stable financial state.
Thus, it is vital to ensure a proper balance in investments in stocks. For inventory in the process. High stock levels can produce challenges in overstocking situations. Such as poor cash flow valuations and financial losses. Stock audits can avoid discrepancies in the stock records when verified with the physical stock. And by assessing the unnecessary adjustment entries done manually.
Organizations should conduct a stock audit at least once a year to ensure that their physical stock matches their computed records. Performing a Stock Audit will allow you to identify discrepancies between physical stock and book stock.
Following are the best reasons why you should look forward to performing a stock audit:
- To update the starting stock information.
- Identify the difference between stock records (also known as computed stock) and physical stock.
- Essential physical stock verification as per the stock record.
- To ensure proper stock handling
- Slow-moving stock, deadstock, obsolete stock, and scrap are all identified.
- Look for discrepancies between recorded and physical stock.
- Update the physical stock so that it corresponds to the recorded stock.
- Accurate stock preservation and handling
Stock Audit Fee in Australia
The stock audit is generally considered an essential auditing process, determining the discrepancies and frauds. However, costs related to Stock audit services in Australia differ by the nature of your business. And what information is needed to be presented to the auditors?
Stock Audit services in Australia
Finding the right Audit companies for inventory or stock audits for a small business is complicated and time-consuming. As an Accounting firm in Melbourne, Mizael Partners’ have worked with hundreds of clients with similar problems as yours.
The consultants at Mizel Partners prepare audit reports for inventory records while maintaining complete transparency so that the stock quantities remain accurately accounted for as per the records. We call this stock control.
To speak with one of our Audit experts, give us a call on +61 (0) 466 228 000. Our Melbourne tax accountants can support your business with every financial need.
Contact us to speak to one of our accredited accountants, please call us on +61 (0) 466 228 000