stock take

[jammie]

I have to do a stock take for official purposes (tax credit checks) Have never done one before and am unsure how to go about it.
I have glass, frit murrini, jewellery , beads, findings etc.......
Any help really appreciated if you have done a stock take and can give me an idea of what I need to do and the best way to organise it. I expect I would include stock othr places ahve for sale as well as whats in my etsy and folksy and my cupboards.   Will probably ignore these in my pockets, handbag, etc!   

[Flyingcheesetoastie]

I kinda break down my stock take into finished stock and it's value and material stock and it's value.  But I'm not sure if this is correct as I've never had to submit it anywhere, I just do it for my own records.

[jammie]

That makes sense thanks!

[Calico Cat]

Yes, you need to value your finished stock, materials and WIP (work in progress - stuff that's part made) separately.

All need to be valued at cost (not retail) - can be a bit of a challenge for finished stock/WIP as that includes an element of "labour".

Hope that makes sense!

[jammie]

Right, so not what i would sell the beads at or a necklace say, but the cost to make them including labour?

[Purple Cobwebs]

Practically, it can help to get a pack of those little dot stickers. Then as you count things you put a sticker on to prevent double counting.
Do your count first so you have quantities, and then attack the costing bit.

Cost is "the lower of cost and net realisable value". So the lower of what it cost to make them, and what you could sell them for. This then takes account of things that have been lurking for some time and need to be knocked down in price to get rid.

You include all stock that you still own, so yes, if it is sitting in a gallery but you only get paid when the gallery sells it, you include it.

Hope that helps. (Posted with my accountant hat on LOL)
x

[jammie]

that does help, thankyou! 

[nemeton]

I have nothing to add to that most excellent advice except to say that I share your pain - stocktake time is my least favourite time of year!

Although at least with a lot of my stock being seed beads, I can get away with weighing rather than counting.

In fact if you have lots of one type of bead, it can be quicker to weigh a sample, count the sample, then weigh the rest of the beads and scale up accordingly 

Best of luck, and do do the sticker thing, it really helps 

[Blue Box Studio]

When I first started all this way back in 1995 my (now) ex wrote me a series of spreadsheets to put all my costs into, so anally all my stock is numbered and on the spreadsheet(s).  Apart from drawers of bits and bobs, my made stock counts itself.  I do a quick squizz through the boxes to account for everything, only the odd thing slips through the net but it now only takes me a day to sort and not a week.  I usually have a craft fair just before my tax year end so I print the list off from my spreadsheet and if it's quiet I have time to sort through the boxes there and cross off what I know I have, leaving just a few 'where did I put it's.   Must be doing something right as IR have visited a couple of times, I think the offer of ginger crunch cream biscuits attracts, and they've been amazed I have a system that seems to work.  It is still my least favourite thing though, I could be doing so many things that are more worthwhile. 

[tinker]

Is stocktaking a requirement? Sounds like I had better have a go in that case!

[chas]

Is stocktaking a requirement? Sounds like I had better have a go in that case!

I think you'll find - generally - that for those with sales of less than say 10k it isn't as there is a) no compulsion to do it for tax purposes and b) there's no advantage as you won't be paying tax (unless you have other income to add to your glass-making activities)

It can be an advantage if by showing you had stock in hand at the end of the year, any large profit landing you in tax-land the next year can be reduced because it can be demonstrated it's partly the result of existing stock.

Otherwise, your Return is basically a 3-liner: sales / ex's / profit.

Having said all that, Jammie said " I have to do a stock take for tax-credit purposes" so, I can only assume stock is regarded as 'savings' for some means-tested benefits - though I've never come across that. Seems a bit harsh, as if stock is ignored, you boost later profit (as above) and so boost the income you declare.

Chas

[jammie]

this is a check by tax credit, B&C compliance regulations. Tax credits take a random selection of claims and then do a fraud check on them, the first lot of info was about our business, this is a follow up asking for about 20 separate  things including bank statements, paypal statements,accounts, sales, stocktake, equipment receipts, prrof of organisations I have joined, proof of craft fairs held,...even postal receipts! It's a nightmare really. Seems to a lot of people are having their tax credits stopped through this and having to pay money back.

[chas]

this is a check by tax credit, B&C compliance regulations. Tax credits take a random selection of claims and then do a fraud check on them, the first lot of info was about our business, this is a follow up asking for about 20 separate  things including bank statements, paypal statements,accounts, sales, stocktake, equipment receipts, prrof of organisations I have joined, proof of craft fairs held,...even postal receipts! It's a nightmare really. Seems to a lot of people are having their tax credits stopped through this and having to pay money back.

Good grief! Seems to come from the 'make it difficult enough and we'll make it not worth their while' school of "Benefit", presumably a cost-saving exercise. Good luck.

Chas

[ARBeads]

And don't forget to add the labour time it took to find and complete all this, it's part of your business expenses!

[Margram]

Good luck with it -  I think I would have a breakdown if I was made to do all that paperwork, the rotters!