This question comes up every year about now. Stocktaking is a big job, and many want to avoid it. I refer you to the following ATO requirements for stocktaking here {link removed} where it states
"If your business buys or sells stock, you usually need to do a stocktake to value your stock at the end of each income year if:
your business turnover is greater than $2 million,
or the difference between your stock level at the beginning and end of year is more than $5,000 (you can make a reasonable estimate to determine this)."
Another requirement is that to get out of a stocktake you need to show that you have a reliable stock control system if questioned. How do you prove that without doing a stocktake?
Reading this, it's clear that the major of our clients are required to do a stocktake. Having said this performing a stocktake is a valuable method of stock control its the best way of determining what stock has been lost to theft, spoilage or taken for personal use. I would recommend that all businesses do a stocktake at least once a year.
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