Why use a stock auditor?

Why use a stock auditor?2024-10-08T14:50:32+01:00

WHY USE A STOCK AUDITOR?

Stock audits are vital for the success of your pub, restaurant, hotel or venue

Why Use a Stock Auditor? A comprehensive audit provides the operators with all the necessary information and guidance to not only report on historical trading but make informed decisions on how the business should trade in the future.

  • Improved profitability: By providing accurate data and insights, a stock auditor helps you reduce waste, prevent shrinkage, and optimize ordering.

  • Accurate stocktakes: Stock auditors use advanced technology and methods to perform accurate stocktakes.

  • Enhanced decision-making: With detailed reports and analysis, a stock auditor can help you make informed decisions about your inventory, pricing, and operations.

  • Increased efficiency: Using a stock auditor saves you valuable time and resources that can be better spent on other areas of your business.

  • Accurate inventory management: A stock auditor can help you manage your inventory more accurately, ensuring that you always have the right amount of stock on hand.

The largest cost to any licensed trade business is its stock. It’s therefore vital that you achieve the maximum return possible.

“Our services could make the difference between success and failure…”

Stephen Grantham, Stocktake UK

Tips on how to optimise stock control and prepare for an audit

Liquor

Get to know the products, how to dispense them correctly and avoid waste.

Know the selling price. You’d be amazed how many clients under charge for items they sell.

Make sure you’re prepared for your stock auditors visit. Ensure the Bar and Storage areas are clean and tidy, with all paperwork (invoices, revenue, allowances etc) ready and neatly filed in date order.

At the end of your auditors visit, be prepared to spend time to discuss their findings and agree a plan of action to help improve your business.

Remember, ANY loss of product is a loss of cash to the business. This needs to be recorded so that adjustments to the report can be made.

Food

Plan your menu: Every dish needs to be costed to ensure you achieve the G.P margin you require.

Be aware of changes to cost prices: Most food items will eventually change in price, and they rarely go down! Items that are in season may rise significantly when the season finishes. Talk with your suppliers to discuss when increases are likely. Make sure you’re able to react, possibly with a change to the selling price, or maybe using an alternative product could be an option.

Avoid waste: Fresh produce of course has a short shelf life. Make sure you don’t over-order, and always rotate the stock.

Portion size: Too small a portion and of course the customer isn’t happy, too much and it could be returned as waste. Correct portion size is vital.

Storage: Correct storage of all food items is important. Temperature, humidity, external odours, and poor storage could all lead to possible wastage.

Preparing for a stock auditor to visit your site

Ensure your bar & storage areas are kept clean & tidy

A stock auditor shouldn’t be required to tidy the bar before they count. Untidy bars and storage areas increase the time it takes to complete the count. This of course increases our time on-site, which may result in additional charges. It of course also increases the risk of counting errors, which could result in an inaccurate stocktake.

It’s always better for stock to be organised prior to being counted. Fridges full, stocktakers love straight lines! Case products tidy and in one location if possible, empties separated from full.

Always ensure your stock auditor is made aware of all storage areas. Make sure they’re unlocked and nothing is hidden.

Remember places like:

  • Staff \ Management accommodation

  • Cash & Carry order that’s still in the boot of the car!
  • That special cupboard where expensive stock is stored
  • Sheds, garages and outside areas.

Be prepared to spend time with your stock auditor

This is a team effort, 1000’s of items purchased, £1000’s taken, all doesn’t happen without a few queries and questions from your stocktaker. You will need to spend time with them at various times during the audit.

Once a result is reached, in our opinion it’s then that the Stocktaker is most valuable. It’s time to discuss their findings.

  • Surplus \ Deficit – Can it be identified where the product variances are from?
  • Gross Profit % – Is it within your expectations, can it be improved? Let us advise you.
  • Can cost prices be reduced? – Improved purchasing equals higher profits
  • Are selling prices in line with your competitors, can a higher price be achieved?
  • What about promotions, have they been successful?
  • Allowances – They do have an effect on profitability. Can they be reduced?
  • The Stocktaker sees many different business models and can offer a wealth of advice and experience.

Stocktaking Services FAQ’s

What is Stocktaking?2024-10-08T11:39:59+01:00

Stocktaking is so much than “counting bottles”, we process all purchases and sales and produce a detailed financial report that is adjusted to reflect all allowances, promotions and wastage.

Since we specialise in stocktaking to the Hospitality Industry we carry out this process for both Liquor and Food stocks, and for the Liquor stock we can provide a detailed variance report vs sales recorded by your till.

See our sample reports to understand better what you will received.

Why is Stocktaking Important?2024-10-08T11:39:59+01:00

External Stocktaking is crucial to a hospitality business, as it gives the operator regular updates on how well their business is performing. However it doesn’t stop there, because our stocktakers are so experienced they don’t just rely on their PC to produce a report, they advise on ways to reduce waste, identify theft or loss, and ensure accurate financial reporting. Regular stocktaking also helps manage costs effectively and maintain optimal inventory levels.

How Often Should I have a Stocktake?2024-10-08T11:39:59+01:00

It’s recommended to conduct stocktakes about once a month. However, some smaller operations may opt for bi-monthly or even quarterly stocktakes. Extended stock periods are not recommended as it becomes harder for us to help you identify and correct issues.

If you are only interested in stock inventory values, we can provide one off valuations for business transfer, and year/half year accountancy needs.

How Long does a Stocktake Take?2024-10-08T11:39:59+01:00

The time required for a stocktake depends on the size of your business and the volume of inventory. However we would suggest the following is true

4 hours, typically a liquor Stocktake at a small pub, restaurant or hotel.

4 – 6 hours, would accommodate a larger liquor stock audit, or a small food and liquor Stock audit.

Full day (up to 8 hours) might cover a cocktail bar, larger Hotel/Public house where Food and Liquor forms a large proportion of sales.

We do also provide stocktaking services at significantly larger establishments, where either more than 1 stocktaking day is required.

What’s the cost of a Stocktake?2024-10-08T11:39:59+01:00

No two stocktakes are the same, and our stocktakers prefer to provide every client with a tailored quote to suite the business. However basically the following factors affect the price of our stocktakes.

Length of time it takes to complete the stocktakes (see above), basically the quicker the cheaper it will be!

When you want the stocktake. Many clients want the a month end visit (to tie in with financial period ends), however we can’t visit everyone on 1st month. Therefore, the closer you want a visit to the 1st of the month, the more expensive it will be (and the less availability we will have to offer you).

Where your premises are. As you will know the costs associated with travelling into and working in Large City Centres are significantly greater than in the suburbs. Likewise if you are in a less accessible area (e.g. Scottish Highlands or Isles), then we will have more travelling to get to you.

Please call us and we will be more than happy to prepare a tailored quote for your business.

What Reporting is Included with a Stocktake?2024-10-08T11:39:59+01:00

Our reporting can be exceptionally detailed, or very simple. Essentially you can choose, so long as you can provide us with the necessary information.

A detailed liquor report can include (costs may vary)

  • Operations Report – including Stocktakers notes re your stock result, their findings and suggestions for the future. Any compliance reporting will be included on this, e.g. Spirit tests etc.
  • Financial Summary – All the financial info you need in one place. Surplus/Deficit, GP, Stock on Hand, Stock Yield, Allowance.
  • Detailed inventory – including product pricing and GP
  • Cost Price Change report, including suggested new retail prices to maintain GP
  • Purchase details and summary.
  • History Summary – showing performance over time
  • EPOS Variance report – detailing gains/losses compared to EPOS sales
  • Cash Count/Reconciliation
  • Revaluation – If you have a set period end date, we can revalue the overall stock on hand forward/back to that date.
  • For group customers we can tailored stock reports to your requirements and provide Group Summaries.

Typically a simplified report (often used for valuation purposes), will include

  • Operations report
  • Valuation Certificate
  • Detailed Inventory

Food stocktaking is generally a simpler reporting set than liquor, and will include

  • Operations Report
  • Financial Summary – GP, stock on hand, and Allowances
  • Stock inventory
  • Purchase Information – by supplier, there is no product breakdown with food.
  • History Summary
What happens if there is a Poor Stock Result?2024-10-08T11:39:59+01:00

Don’t panic, our stocktakers are experts in their field, and they will take you through all stock results (good and bad) and help explain where your stock control can be improved. Given that we perform thousands on stocktakes every year, our stocktakers will have seen every scenario possible, and should you chance upon something new, they have the backup of our Head Office and network of 70+ other stocktakers to help them out.

Logonn – Our online stock management system

In addition to traditional stocktaking services, our internet-based stock management system ‘Logonn’ provides a valuable and efficient tool to conduct in-house stock auditing, with 24/7 access and support by stocktaking experts. Operating from any internet-connected PC, LOGONN allows interim stock results, line checks and historical reporting at a time suitable to the end user, all for a fraction of the costs of other comparable systems.

Discover more about Logonn and download a free trial at: https://www.logonn.co.uk

Explore The Possibilities

Are you looking for Stocktaking Services or are you considering joining our team of Stocktakers? Contact our team on 0800 027 4128, email info@stocktakeuk.co.uk or fill in the form below to take the next step.

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