Carrying out inventories
Inventory is the calculation of an organization’s own funds or an individual entrepreneur (IE). The organization’s funds are called the entire asset of the balance sheet, starting from accounts receivable and ending with other financial assets.
Contacting «Daxiko Company” You save yourself from organizational problems, possible mistakes, and significantly reduce the time to perform inventory accounting. In addition, outsourcing this procedure is much cheaper than the cost of hiring your own employees, which entails stopping production or sales. By putting the inventory in our hands, you are not distracted from your main activity, but only evaluate the final result of our work.
Types of inventory
When carrying out an inventory of the client’s property, our company uses reconciliation methods that vary in scope and purpose. This factor directly depends on the specifics of the organization’s activities and the tasks assigned to the specialists of Daxiko Company. Based on this, it is possible to distinguish such types of inventory services as:
- Full and partial
A full inventory is carried out at the end of the year, before reporting. It is mandatory and covers reconciliation of inventories, fixed assets, accounts receivable, financial assets, cash and other property. In turn, a partial inventory is a method of additional control, during which a reconciliation of part of the assets takes place, for example, an audit of cash. - Solid and selective
A continuous check is carried out for all departments belonging to the organization, whereas with a selective check only some items are checked in the departments with the largest number of inventory items. - Planned and unplanned
For scheduled reconciliations, there is a schedule of control and audit work prescribed by management in the company’s accounting policy. Unscheduled is a control reconciliation method that is performed not according to schedule, but due to some circumstances. - Voluntary and mandatory
Voluntary inventory can be carried out at any time throughout the year, at the request of the company’s management. While the mandatory one is performed strictly in December — January, before the preparation of annual reports.
The timing of the inventory
The timing of the audit, not counting the mandatory inventory, is determined by the head of the enterprise. The inventory order is drawn up on behalf of the head. Most often, this procedure is prescribed in the middle or at the end of the reporting period. This may be an interim cut in June — July, or a large annual reconciliation in December — February.
Reconciliation is carried out within a certain period of time and can last from 1 day to 1 month. A lot depends on the number of positions being checked, the size of the organization itself, its accounting policy and management policy. In addition, more than one person is working on this process. Usually, several specialists are involved to perform calculations, which requires more time for inventory
Inventory rules
There are basic rules for conducting an audit of property that must be followed in preparation for the procedure. During the inventory period, a commission is created that provides employees of the outsourcing company with commodity reports, receipts from responsible persons of the organization and other data. Also, the members of the commission are required to be present during the inventory procedure, otherwise its results may be invalidated. In most cases, a mandatory asset audit is required when:
- Annual financial statements are prepared;
- The management or financially responsible persons are replaced;
- There is damage or loss of property as a result of a natural disaster and an emergency situation;
- The company is at the stage of reorganization or liquidation;
- Facts of theft and intentional damage to property are revealed;
- The company’s property is being sold or redeemed;
- The property is rented out;
- In other cases provided for by legislative acts of the Republic of Kazakhstan.
The procedure for conducting an inventory
The calculation of the company’s existing assets is a rather laborious work and is divided into several fundamental stages. The key ones are the preparation for the inventory, the main period and the analytical period. The procedure for calculating inventory items is performed in the following order:
Preparing for verification
In the process of preparing for this procedure, our specialists are familiarized with materials, acts and other documents containing information about the assets to be verified. Then a database is being prepared, into which information about the initial balances available to the organization will be uploaded.
The main audit period
The main period includes transferring the client’s actual own funds, identifying surpluses, shortages and fixing calculations. For these purposes, manual certificates and inventories of the actual availability of valuables are created.
Reconciliation of results with credentials
At this stage, the totals of the main period are entered into the database and reconciliation takes place. Then the final inventory report is drawn up. It indicates discrepancies with the initial data on the availability of own funds and their quantity. The final numbers are also adjusted at this stage.
Analysis of the results
Calculations are recorded in statistical forms established by law. In addition, management has the right to develop the forms themselves if they are used exclusively for the internal activities of the organization.
Inventory results
After the audit has been carried out and the commission has fully approved its results, our specialists or employees of the accounting department of the organization make corrections to the accounting data of the results.
At the end of the procedure, surpluses, shortages and other deviations from the initial indicators are written off. They can be reflected as income or expense. Then, the management of the organization issues an order approving the results of the inventory. On the basis of this document, the discrepancies found are reimbursed at the expense of the perpetrators. The documentation is signed by all participants in the process, after which it is considered completed.
The specialists of Daxiko Company carry out inventory quickly, accurately and efficiently, without distracting the employees of the client’s organization from their work. Of course, it is impossible to do without involving interested parties, which may be warehouse managers, storekeepers, and management representatives. But in general, you will not have to completely stop the company’s activities for the period of audits, which eliminates the loss of profits in future periods.