Valuing stock

[bombini]

I have left everything until the last minute as usual and my accountant wants me to do a stock take and value the stock, professional and retail.

I have sorted the retail out but when I started to list the pro products I suddenly realised that most of them are half full to empty so how do I value them ? Do I just list the price I would pay new or halve it ? Or do I just estimate what I think the whole lot is worth ?

What does everyone else do (or should do) ?

 

[joe90]

I could be wrong here Juliette but I wouldn't put a stock value on professional use products as when bought they are purchased as materials to "do the job". I would only do a stock take for retail stock.

 

[lilacm]

Just value the stock that is unopened. E.g 26 tubs of wax unopened at X price purchased. Then enter it all onto a spreadsheet.

It should be included at the lesser of cost or net realisable value so as long as it is 'as new' and was purchased recently cost is easier by checking back on your invoices.

You could include part bottles but you wouldn't be able to sell them at anywhere near the price so therefore you have to assess what the net realisable value is. For example 1/2 a tub of wax would be unlikely to sell at 1/2 the cost. Therefore most people just count unopened stock.

 

[bombini]

Thanks to both of you :hug:

So glad I posted this thread, I would have had a fit if id spent hours going through the stock and deciding on figures for no good reason.

Its taken me long enough just to count the retail stock im sure there aren't enough hours in the day since having a baby ! :lol:

 

[collin]

I have left everything until the last minute as usual and my accountant wants me to do a stock take and value the stock, professional and retail.

I have sorted the retail out but when I started to list the pro products I suddenly realised that most of them are half full to empty so how do I value them ? Do I just list the price I would pay new or halve it ? Or do I just estimate what I think the whole lot is worth ?

What does everyone else do (or should do) ?

It is important that you value ALL stocks..that retail items and pro items and that the valuation is based on "cost"price paid.

So value everything at cost ...even half empty items that full cost £xx so half is £x

Its far better to value everything as this will show a true "value" from a tax perspective and also your accountant will tell you if that specific item you have listed and valued really doesn't need to be done.
remember of course that if you don't value stock your profit position could well be enhanced so you will undoubtedly pay more tax when you really didn't need to.

List everything and let your accountant tell you what doesn't need listing for this return as well as future returns.

Good luck counting and measuring :lol::hug:

 

[bombini]

It is important that you value ALL stocks..that retail items and pro items and that the valuation is based on "cost"price paid.

So value everything at cost ...even half empty items that full cost £xx so half is £x

Its far better to value everything as this will show a true "value" from a tax perspective and also your accountant will tell you if that specific item you have listed and valued really doesn't need to be done.
remember of course that if you don't value stock your profit position could well be enhanced so you will undoubtedly pay more tax when you really didn't need to.

List everything and let your accountant tell you what doesn't need listing for this return as well as future returns.

Good luck counting and measuring :lol::hug:

bugger :irked::grr:

Now that you mention it I do seem to recall her saying that whatever the stock is worth its offset against profit or something like that.

Thats wrecked my night then !

 

[collin]

bugger :irked::grr:

Now that you mention it I do seem to recall her saying that whatever the stock is worth its offset against profit or something like that.

Thats wrecked my night then !

Sorry but you will thank me when you pay less tax :lol::hug:

 

[persianista]

Agre with Colin. Value it as full bottles, it will be quicker. Plus more off ya tax bill x Don't break your neck trying to be too exact.

 

[angelina221]

I've just done all mine. You need retail stock and your salon stock. It doesn't need to be an exact figure so don't stress too much about it.
It probably took me less than 2 hours to do mine!
I always know how much my stuff costs-lol
I had a girl do a weeks work experience with me once and i had a rep round. I sat there telling him how much stock costs at about 3 other places and the works experience girl just couldn't believe i knew how much everything cost-lol When you shop enough you get to know the prices and i just went round adding it all up in my head.
You could always make a list of stuff that you buy regularly and put the price next to it so when you have to do it again, you will have a quick list to make it easier.