‍DoI have tocarry out an inventory?

The most important question first: Is the retail trade obliged to take an inventory? In principle, we can answer this in the affirmative. Entrepreneurs such as florists, bakers, kiosk owners or operators of farm stores are generally obliged to keep double-entry accounts and must therefore carry out an inventory once a financial year. Founders and store owners who give up their business must also carry out an inventory.

Who is exempt from stocktaking?

Are you a freelancer or have you not generated an annual surplus of more than 60,000 euros in two consecutive financial years? Then you are exempt from the inventory requirement. Ideally, you should have a good tax advisor who can help you in case of doubt or ambiguity. They will tell you whether you need to carry out an inventory and can also give you valuable tips for the inventory itself.

Why is an inventory important?

Stocktaking takes time and can be an additional burden in the already hectic everyday life of a business owner. However, it is not only a duty, but also offers you many advantages as a retailer. It gives you a precise overview of your stock, allows you to identify missing items, protects you against back taxes and helps you to identify bestsellers and real slow sellers. For you as a retailer, stocktaking is far more than just a chore. It is a tool for taking a close look at your business activities - for more efficient and sustainable management.

What types of inventory are there?

In the retail trade, a distinction is usually made between three different types or possibilities of stocktaking.

• Perpetual inventory: Here you keep a stock book in which your inventory is recorded exactly throughout the year. This is particularly advisable if your stock changes frequently. The actual stocktaking can be spread over several days in the financial year.
• Inventory before and after the balance sheet date: Do you have hundreds of different items in your product range? Then the classic key date inventory on the balance sheet date is not an option for you. Alternatively, you can carry out the inventory on any day in the first three months before the reporting date (from October) or in the first two months after the reporting date (until the end of February).
• Inventory sampling: This variant is more suitable for medium-sized companies or groups that have more than 2,000 items in their product range. With inventory sampling, a representative stock is determined at random and then extrapolated to the entire stock.

How is the inventory carried out?

An inventory must be complete, correct and verifiable. To help you achieve this, we have some valuable tips for you here:

• Inform your customers: Many retailers close their stores to carry out the inventory. So inform your customers and business partners in advance. This also makes sense if you are open during the stocktake but your employees do not have as much time as usual to advise customers.
•  Plan all processes: Weeks before the stocktake, think about exactly when you want to carry it out, who from your team should be there and how you can sort the goods so that the stocktake is as uncomplicated and orderly as possible. This will save you a lot of time and stress.
• Use a digital POS system: Digital POS systems such as LocaFox not only make accounting easier for you, but are also helpful for stocktaking. After all, you have a transparent overview of all stock levels, don't have to use an MDE device to check each shelf individually and then receive a precise inventory report with an analysis of shrinkage and other important aspects.

Stocktaking in retail: which app is recommended?

Flirting, cooking or booking a vacation: There's an app for almost everything. So why not for stocktaking in retail? This is exactly the question we asked ourselves at LocaFox and developed a digital answer with the Inventory App . The app can be downloaded from the Play Store in a matter of seconds and ensures that incoming goods are recorded quickly and conveniently. With the Inventory App on your smartphone, you can now simply stroll through the store, literally change the stock as you go by and manage it digitally. Incoming and outgoing goods can also be easily recorded with the app. This is particularly practical if you receive a large delivery of different products (such as 200 drinks cans with different varieties) at once. As you can see, with the LocaFox inventory app, you have the perfect tool for your inventory in your pocket at all times!

Would you like to find out more about inventory in retail, our digital POS system or the app? We will be happy to advise you personally and answer the most important questions about the LocaFox Inventory app in our Help Center.