THE GUV'NOR

Graham Rowson

Find a decent stocktaker and get your pub running more efficiently, says the licensee of the Plungington Tavern, Preston, Lancashire

I have used the same stocktaker for more than 10 years and he has become a trusted friend and ally. What he cannot tell me about my business during our monthly meeting is not worth worrying about.

I have spoken to some licensees who don't use one and do it themselves. To me, that sets off alarm bells. I am amazed at how some people run their businesses this way, when, for a sum of about £70 per month, virtually all your accounting is done in one session.

Here's how a decent stocktaker can ratify your accounts, VAT, GP, sales, cash cows, dogs and losses:

1 Firstly, your stock taker will need your weekly takings less VAT, so you will already know how much VAT is due, less what you are claiming back; therefore a monthly or yearly comparison of sales can easily be carried out. Purchases of stock will need to be proved, so a balance against takings can be made and analysed.

2 From the stock report two main items are addressed; your GP and stock variances. The GP gives you a true feeling that your selling prices are correct and the stock variation is a good indicator of pilfering and freebees.

3 The report will also tell you how many days of stock you have left, so you can avoid over-ordering. It will tell you what products are your cash cows (making the best GP and sales) or, vice versa, what products are dogs (not selling and must be dropped).

4 Automatically stock losses are flagged up so an investigation can begin before it gets out of hand. These could be down to theft, dray shortages, incorrect stock recording etc, but it's up to you to find out why. A stocktaker will give you a good idea of what's wrong.

5 Having bad stocks will give the VAT officer something to chew on and a small discrepancy in any one period can be multiplied by periods in a year, and then by three years. In the end, you will have to pay up. It will be hard to prove otherwise if you have no paperwork to back you up.

So, if you haven't got a stocktaker, I suggest you get one now and start becoming accountable for your business. Don't forget, other people depend on your success for a living.