Category Archives: 2 Processes

Stock counts more often than just once a year

Owning inventory means that you need to count for it – both to ensure that it’s really there physically and also that what’s physically existing, is also accounted on the inventory ledger and hence also on the balance sheet. Whilst we’ve covered the general gist of stock counts, what we have not covered, are partial stock counts which happen more than just once a year.

A full stock count is something you normally do once a year. Given your business type and systems you may decide it’s best to do them more often, but as it is, it’s mostly done just once a year. However, there’s also an option to do just partial stock counts for specific areas, specific types of goods and so on. Either you do them on top of the full stock counts or you only do the partial ones, depends on the level of planning and detail you put into the partial stock counts. Continue reading →

Keep in mind the payment dates for due invoices

You receive an invoice, it has a payment date that’s not today, and you put it away. I’m pretty confident that if the invoice had today’s date, it would get your attention for a bit longer, for as long as it takes to pay it. Note that there’s nothing wrong with it being put aside if the date wasn’t today’s.

However, as it happens, often times the invoice doesn’t get any attention apart from “Oh, don’t have to pay it today, I will look into it sometime later” or some similar comment. And that’s that.  Continue reading →

What should be the payment term for sales invoices?

It’s one thing to make the sales happening, i.e. having something to sell, having customers and so on, but it’s another thing to manage it all properly. If payments are done on spot, there’s no issues really in terms of invoices, however, if you’re using invoices, i.e. your customers can pay at a later date, the question is, what will the “later date” be.  Continue reading →