The POS Software Blog

The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

Stocktakes are a thing of the past for retailers and here’s why


While our POS software has stocktake facilities to enable fast and accurate counting of inventory, it’s not necessary for businesses to do a stocktake at the end of the financial year. You can ignore the end of year stocktake if you are disciplined as to how you run your retail business. here’s what you need to do:

  • Track all inventory arriving in the business at the point of arrival. This is easy with electronic invoices from suppliers or software generated order files.
  • Track all sales, at the point of sale. Scan everything you sell. This is easy to do, for anything.
  • Track all returns at the point of return. Anything you send back to a supplier, scan it out first. The same is true for any products you write off.
  • Spot stocktake parts of the business to get a read on theft.

These straightforward things done in a retail business with consistency and accuracy will provide the business with a stock listing, what you’d usually get from a stocktake, that is accurate for your financials and accurate for your taxation return purposes.

By having a tight and consistent approach to stock management at all appropriate gate points in the business and doing this work daily on stock movements, you negate the need for end of financial year work. This saves time, labour cost and results, actually, in more accurate business data.

Stocktakers, of course, will criticise this as this post makes the point that they are not necessary. the thing is, their manual processes, have been found to be inaccurate and, often, inappropriate. Stocktakers make their money from selling you their services. What we are saying is that with good business management practices you don’t need a stocktaker, you don’t need that cost.

For those who do want to do a stocktake, we make stocktake easy. We have a stocktake process in our POS software that could save you time and help you know what you need to know today.

While doing a stocktake of the whole business is the traditional way, if you break it up and do sections of the shop when it suits, you could, through a rolling stocktake process, have more accurate data with a lower labour cost for the counting of stock.

The Tower Systems POS software lets you do part of the shop if you wish. That could be a shelf, an aisle, a section of the shop or even a single item. Of course, you can do a stocktake for the whole store too.

By doing a stocktake of a section or segment of the business, you can concentrate on high moving items, items more likely to be stolen or for some other reason. You can also schedule these sectional / spot stocktakes in a way that suits your labour availability. Finding half an hour to do a section in a daily roster could save the business money compared to bring people in especially to stocktake.

Having worked with 3,500+ local retail businesses for many years and participated in many stocktakes across a variety of product categories, our advice is that the rolling stocktake approach is usually more time efficient and financially beneficial to a business. This approach does provide you an earlier indication of possible theft challenges.

Good POS software gives you stocktake flexibility and this helps you drive value for your business.

Now, some quick fire stocktake questions, which we answer from the perspective of the Tower Systems software.

  • Can my shop be open while I stocktake? Yes.
  • Can I stop and start the stocktake? Yes.
  • Can I use multiple terminals to stocktake? Yes.
  • Can I use a hand help PDE or PDA? Yes, many brands are supported.
  • Can I use a laptop? Yes.
  • How long will it take? It all depends on your products, store layout and staff training. Time improves as they go usually.
  • How often should I do a stocktake? Once a year for the whole business or weekly in manageable time bites if doing the rolling approach.
  • Will you train us? Yes, we have excellent self-serve and one-on-one training resources and options.

If you are thinking about an end of year stocktake, consider changes you could implement in your business that render this usual end of financial year activity worthless.

By Mark
The POS Software Blog




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