The end of the financial year is just four weeks away for Australian companies. For any business with inventory, this means it’s time for the end-of-year stock-take. Prepping for taxes and wrapping up your financial year can be a chore, and your stocktake is no small part of the task. But your end-of-year stocktake doesn’t have to be a nightmare.
Your end-of-year stocktake is how you reconcile your inventory with your accounts. It is the fundamental task to attain the true picture of your company’s profitability.
Physically checking your stock against your records will take time. But you can make the process smoother with the right preparation.
Cin7 produced a webinar to help customers using Cin7 prepare for their end-of-year stocktake. The advice was addressed to New Zealand and UK customers who faced their end of year stocktakes back in March, but the fundamentals are the same.
End-of-Year Stocktake Best Practices
Cin7 makes it easy to review your end-of-year inventory data before exporting to your accounting software. Follow these best practices in your next stocktake.
- Review Open Purchase Orders. Check for purchase orders that were dispatched at the line item but not dispatched completely. Enter the fully-received date, the invoice date, and supplier invoice number for every verified completed order. This will flag the order for export to Xero.
- Review Open Sales Orders. Double-check available stock in Cin7 for sales orders that have been fully picked but not fully-dispatched. Xero will only reflect accurate stock on hand and COGS for sales orders imported with an invoice number. Double-check all open sales orders and supply an invoice number for those orders you’ve actually completed.
- Review Production Jobs. Open production jobs include both receipted-out components and unused components. But, they won’t have a final product to balance your stock-on-hand. Avoid discrepancies in your accounting software by setting a job as complete only when the entire production job is truly finished.
- Check Your POS Transactions. Make sure you closed your registers on a daily basis through the year. Closing registers “batches” POS transactions by date. Cin7 will not export transactions to Xero unless they have been batched. You can close registers any time by reviewing sales in the Register module.
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