Physical inventory.
WHAT THREATENS STOCK
Damage Theft Deterioration Loss in transit Obsolescence
WHAT TO DO
Store appropriately Control access Count regularly Insure what is substantial
THE COUNTING POINT
Regular stock counts identify loss early.
Discrepancies discovered annually cannot be investigated.
FOR GOODS IN TRANSIT
Establish who bears the risk: you, the courier, or the customer.
That should be stated in your terms and in your courier arrangement.
WHAT COURIERS TYPICALLY COVER
Limited amounts, unless additional cover is arranged.
Establish the limit before sending anything valuable.
FOR IMPORTED GOODS
Consider the period between payment and arrival.
WHAT TO RECORD
What you hold, and its value.
WHAT TO REVIEW
Whether your cover reflects current stock levels.
Seasonal businesses may hold far more at certain times.
WHAT TO TELL YOUR INSURER
If stock levels vary substantially.
