Today I want to talk to you about doing a year-end valuation.

We do a lot of work with private members clubs, so they might be working men’s clubs, old words clubs, political clubs, conservative clubs. They all seem to use the calendar year as their financial year, what this means is that if they don’t have regular stock takes through the year they at least, because of their constitution I guess and getting accounts passed off signed off, they get us in just to value the stock.

That means we go in, we count all the stock, we take all the sell by dates and use by dates, if they’re not a regular client where we are going in every quarter every month or whatever, we will then asked them for their last quarters invoices.

We then go through those invoices to get the cost prices, we put those in our system, at the end of it we produce a stock value stock listing, so it will have a code, it will have what it is, what we counted in and what their price per count. So for instance beer we count in gallons so the cost price of the gallon of beer ex-vat as well as what I count is, and then do the multiplication to tell them what the value of that item was.

We do that for all your items that they sell, we will probably also add in the cellar gas.

We print that off, print them a certificate and a front sheet, they then submit that to their accountants.

Often we have to do two:

One they will keep for the committee meeting

One to go off to their accountant/ bookkeeper, who then puts that into their management accounts and for the year end accounts, they can then work out the actual GP, and the profit they’ve done for the year.

What it means though, we said we always get a bottleneck of dates for a lot of clubs for 31st of December, so we can’t actually be on site everywhere that day.

There is a formula that allows us, which is approved by HMRC, to either do it before or do after.

It’s a lot easier if we can do it a few, with in the days after year end because then all the information is on site, we take your takings since your year end and you purchases, credits, etc, I can work back to what it would have been on year-end.

If we’ve gone in before, it’s a bit more complicated because you have to give us your takings and all that information after we’ve left. So there’s a few days gap and would rely on you to do it.

But year ends really important, very important to get your stocktaker in and booked in well in time.