Keep movements and values connected
Purchases, deliveries, customer returns, damaged goods and transfers should retain a reference that can be traced. Goods in transit or held by another party may need separate consideration. The accountant determines the valuation policy; the records must support its application.
Supplier invoices and stock receipts can fall in different periods. A cutoff review identifies what was received or owned at the reporting date without assuming that every unpaid invoice belongs to ending inventory.
Explain the difference before adjusting it
A physical count variance can reflect a delayed transfer, unit mismatch, damage or a recording error. We investigate material items with the operational team. Approved corrections retain a reason and date so recurring issues can be identified.
Illustrative example: cartons and individual units
A Surrey distributor purchases 80 cartons containing six units each, but one import records 80 individual units. Comparing the purchase record, goods receipt and count explains the 400-unit difference. Correcting the unit conversion preserves the actual purchase cost instead of creating an unexplained gain in stock.
Questions about this work
Do you perform the physical count?
Count responsibilities are agreed separately. We can prepare reconciliation schedules and review the records supplied by the people responsible for the stock.
Can you guarantee a tax valuation?
No. Valuation and tax treatment require the relevant accounting policy and review. Our work organizes the evidence and reconciles the supporting balances.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review