Business Transfer Stocktakers
Impartial stock counts and valuations when a business changes hands, carried out fairly for both buyer and seller.
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Our Services
Year End Stocktakers
Independent year end stock counts and valuations, prepared for your accountant and annual accounts.
For most businesses that hold stock, the closing stock figure is one of the largest numbers in the year end accounts, and one of the few that cannot be checked from a bank statement or an invoice. It has to be counted. An independent year end stocktake gives you, your accountant and, where you have one, your auditor a figure that has been physically counted by people with no interest in the result.
We carry out annual and period-end stocktakes for retailers, pubs and licensed premises, wholesalers, distributors and small manufacturers. Each count is planned around your financial year end and your trading pattern, and reported in a form your accountant can use without having to rework it.
What's included
- Counts planned around your financial year end date
- Cut-off agreed in advance for goods in and goods out
- Valuation at cost, or at selling price converted to cost, as instructed
- Damaged, obsolete and slow-moving stock listed separately
- Rechecks on high-value and unusual items before the count closes
- Signed summary and detailed reports in formats your accountant can use
Why the year end stock figure matters
Closing stock feeds straight into your cost of sales, so it directly affects the profit you report. Overstate it and profit, and potentially tax, is overstated; understate it and the opposite happens. Because this year’s closing stock is next year’s opening stock, an error also carries forward into the following year’s results.
An independent count gives the figure a clear evidence trail: who counted it, when, how it was valued and what was excluded. That helps if your accounts are queried, you are raising finance or the business is being sold.
Businesses we count for
Year end stocktaking is not limited to one type of business. The principles are the same; what changes is how the stock is held and how it is best counted.
- Independent shops, convenience stores and multi-site retailers
- Pubs, bars, restaurants, hotels and other licensed premises
- Wholesalers, cash-and-carry depots and distributors
- Small manufacturers holding raw materials and finished goods
- Trade counters, builders’ merchants and parts suppliers
- Online sellers with their own stockroom or storage unit
Choosing the count date
The simplest approach is to count on your year end date itself, or as close to it as trading allows: the evening after closing, or first thing the next morning before any sales or deliveries.
Where that is not practical, many businesses count a few days before or after the year end and adjust the figure for the movements in between, using sales, purchase and returns records. This is often called rolling the count forward or back. It works well when those records are reliable and the gap is short. Your accountant or auditor should agree the date and the adjustment method before the count is booked.
Year end dates tend to cluster, especially around the end of March and the end of December, so it is worth booking early.
Cut-off: goods in and goods out
Cut-off means making sure every item is either in the count or in the purchases and sales records, but not both and not neither. It is one of the most common causes of a year end stock figure being wrong, and it is easy to get right with a little planning.
- Deliveries received before the count are counted, and the supplier invoice is recorded in the year
- Deliveries arriving after the count are kept apart until it has finished
- Goods sold but not yet collected are identified and excluded
- Returns to suppliers are counted or excluded consistently with the paperwork
- The last delivery note and sales document numbers before the count are noted
What is included in the count
Before the count we agree with you exactly what is in scope, so the figure reflects the stock you own rather than simply the stock on the premises.
- Stock on the shop floor, in stockrooms, cellars, chillers and storage units
- Raw materials, packaging and finished goods for manufacturers
- Work in progress, recorded by stage where you can give us a basis for it
- Stock you own that is held elsewhere, confirmed from your records
- Stock held for others, on consignment or sale-or-return, identified and reported separately
Valuing the stock
In UK accounts it is common practice to value stock at the lower of cost and net realisable value. We apply the valuation basis you and your accountant give us, and the accountant or auditor should confirm that basis before the count.
Counting at cost
Where you can supply cost prices, from a product file, price list or recent supplier invoices, each counted line is valued directly at cost. This gives the most direct route to a figure for the accounts.
Counting at selling price
In many shops it is quicker and more reliable to count at the marked selling price. The total can then be converted back to cost using the margins and VAT treatment you or your accountant provide, usually by department, and both figures are reported.
Net realisable value
Net realisable value is what an item is expected to sell for, less any costs of selling it. Where that is below cost, as is often the case for damaged or outdated stock, a lower value may be appropriate. We flag those items; the decision on how to value them sits with you and your accountant.
Damaged, obsolete and slow-moving stock
Stock that cannot be sold at its normal price is the area where a year end figure is most often overstated. During the count we record damaged, out-of-date, discontinued and visibly old stock separately, with its location and quantity, rather than leaving it mixed in with saleable goods.
If your system can show the date each line was last sold or received, we can also highlight slow-moving lines in the report. That gives your accountant a clear starting point for any write-down, without us making judgements that belong to them.
Manual or barcode counting
The right method depends on your stock and your records. We recommend one when we quote and explain why.
Manual counting
Suits smaller businesses, stock without reliable barcodes, and counts where a departmental or category total is all the accounts need. Stock is counted area by area onto prepared count sheets.
Barcode scanning
Suits businesses with consistently barcoded stock and an up-to-date product file. Each scan matches to a known line, giving an item-level count and valuation. Items that will not scan are recorded and dealt with, not skipped.
Rechecks and count controls
Every area is counted and marked complete before the team moves on, so nothing is missed or counted twice. Before the count is closed, high-value lines, unusually large or small quantities and anything that looks out of place are rechecked.
Where your records show expected quantities, significant differences can be rechecked too. Rechecks reduce the risk of error but cannot remove it entirely, which is why the method and checks are recorded in the report.
Working with your accountant or auditor
We are happy to speak to your accountant before the count to agree the valuation basis, cut-off arrangements and the reports they want. If your accounts are audited, the auditor may wish to attend and observe the count, or carry out test counts of their own. We plan the day so they can do that without holding up the count.
Our role is to count and value the stock as instructed and report it clearly. It is not an audit, and we do not give accounting or tax advice; those decisions stay with you and your advisers.
Preparing for your year end stocktake
Good preparation shortens the count and makes the figure more reliable. We send a checklist once the date is booked; the main points are below.
- Stock tidied, faced up and grouped, with storage areas accessible
- Damaged, returned and out-of-date stock separated and labelled
- Stock belonging to others clearly marked
- Deliveries scheduled to avoid the count where possible
- Cost prices, product file or margins and VAT treatment ready
- Last delivery and sales document numbers noted at the cut-off
- Someone available who can answer questions during the count
Reports for your accounts
You receive the results in a form your accountant can work with, normally a spreadsheet alongside a written summary. What is included is agreed when we quote; typically it covers:
- Total stock value on the agreed basis, with the count date and cut-off
- Values by department, category or location
- Item-level quantities and values, where counted by barcode
- Selling price and cost figures, where counted at selling price
- Damaged, obsolete and third-party stock listed separately
- A signed summary of the count, its method and any exclusions
What happens on the day
- 1
Planning and quote
We agree the count date, scope, valuation basis and cut-off, ideally with your accountant involved. You receive a written quote before anything is booked.
- 2
Arrival and briefing
We walk the premises with your contact, confirm what is in and out of scope, and note the last delivery and sales records before counting starts.
- 3
Area-by-area counting
Each area is counted and marked complete before the team moves on, so progress is clear and nothing is counted twice.
- 4
Rechecks and exceptions
High-value lines, unusual quantities and items that do not match are rechecked, and damaged or obsolete stock is confirmed as listed separately.
- 5
Walkthrough and sign-off
A final walkthrough with you confirms every area has been covered, and the count is signed off before we leave.
- 6
Valuation and report
The count is valued on the agreed basis and the reports are issued in the format and timescale confirmed when we quote.
Frequently Asked Questions
Why do I need a stocktake at my year end?
Your closing stock figure directly affects the profit shown in your accounts, and this year’s closing stock becomes next year’s opening stock. A physical count is the usual way to support that figure, and an independent count gives it a clear evidence trail.
Does HMRC require an independent stocktake?
HMRC expects the stock figure in your accounts to be accurate, but it does not require you to use an independent stocktaker. Many businesses use one because it provides a documented, evidenced figure if the accounts are ever queried.
Can the count be done on a different date from my year end?
Often, yes. Many businesses count a few days either side and adjust for the sales, purchases and returns in between. This works best when the gap is short and the records are reliable. Your accountant or auditor should agree the date and method first.
Should stock be valued at cost or selling price?
In UK accounts stock is commonly valued at the lower of cost and net realisable value. We can count at cost, or at selling price and convert back to cost using margins and VAT treatment you supply, reporting both figures. Your accountant should confirm the basis.
What does cut-off mean?
Making sure each item is either in the stock count or in your purchase and sales records, never both and never neither. We agree how deliveries, collections and returns around the count will be handled before the day.
How do you deal with damaged or obsolete stock?
It is counted and listed separately, with its quantity and location, so your accountant can decide whether a lower value is appropriate. Where your system shows last sale dates, slow-moving lines can be highlighted too.
Can our auditor attend the count?
Yes. Auditors often wish to observe the count or carry out their own test counts. Let us know when booking and we will plan the day to allow for it.
Is a year end stocktake the same as an audit?
No. We count and value your stock as instructed and report the result. An audit is carried out by your auditor, who may use our count as part of their work, but our count is not itself an audit.
How long does a year end stocktake take?
It depends on the amount of stock, how it is stored, the counting method and access. A small shop or bar may take a few hours; larger premises can take longer or need more than one visit. We give an estimate when we quote.
What reports will we receive?
Usually a spreadsheet and a signed summary showing the total value on the agreed basis, values by department or location, and separate lists of damaged, obsolete and third-party stock. The exact reports are agreed when we quote.
Other services
Retail Stocktakers
Independent shop floor and stockroom counts for independent and multi-site retailers, valued at retail or cost.
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Convenience Store Stocktakers
Independent counts for convenience stores, newsagents and forecourt shops, with high-value lines reported separately.
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Need a stocktake arranging?
Call us for a no obligation quote, or send through the details of your premises and we will come back to you the same working day.