Gross profit analysis– Knowing your gross profit for this period will allow you took look deeper into the positives and negatives and how this can be increased in the future.

Uncover reasons for shrinkage– A regular stocktake will highlight problems with theft, damaged stock, unprocessed or missing orders, and poor stock control practices.

Help you meet business targets– If you find some major discrepancies in your numbers, you may not be on track with all your financial goals. It’s better to discover this sooner rather than later and readjust your forecasts while you can.

Put product performance under the microscope– It’s easy to lose track of which products are doing well and those not so much. A stocktake will put this into focus for you. If you have large numbers of a product that has been on the shelves for months, it’s a good indication that it’s not popular and that you may have to cut the price and let it go or just reduce shelf space.

Find flaws in your pricing strategies– After a stocktake is the best time to analyse profit and sales, making changes to pricing that isn’t generating enough profit.