Why stocktake matters - Don’t skip this EOFY task!

EOFY is here again – and you trying to juggle payroll, bills & BAS.

But before we wrap up the financial year, there’s one more important task that mosty often get left unsceen (but can acutally save you money): YOUR STOCKTAKE

I get it, counting stock isn’t very exciting i know i’ve been there. But don’t take of too quickly.

Completing your stocktake now can seriously help when it comes to tax time and keep your books (and the ATO) in tip top shape.

Here’s the why

If you sell products – spare parts, beauty products, filters etc – the ATO want to know how much stock you’ve got on hand at the end of the financial year.

This is what they call your Trading Stock, and it affects:

1. Your cost of goods sold (COGS)

2. Business Profit

3. And most importantly – your taxable income.

If you don’t complete a stocktake, you risk overpaying tax, missing deductions or facing other questions from the ATO.

Common Mistakes I See (Don't let these Catch you)

• Counting based on what your system says - but not what's actually sitting on the shelf

• Skipping damaged or expired items

• Using sale price instead of cost (ATO won't be happy)

• Forgetting to update your accounting software afterwards

Process

You don’t need fancy software (though it helps!). Here’s a simple step-by-step I use with my clients:

1. Choose Your Day:
   Pick a quiet time close to June 30. Close up early if you need to — this will save you future headaches.

2. Get Set Up:
   Grab your inventory list, a clipboard or tablet, and start counting what’s physically in your shop, storeroom, or shelves.

3. Record What You’ve Got:
   Write down how many units you have of each item. Check for damage or expired stock — note that too.

4. Value It Properly:
   Now here’s the important part: The ATO lets you value your stock at the lower of:

   • What you paid for it (cost price)

   • What you could sell it for (market value

   • What it would cost to replace it today (replacement cost)

So if you’ve got dusty stock that no one’s buying, you might be able to write it down — and save on tax.

5. Update Your Records:
Finalise your closing stock total and share it with your bookkeeper or BAS agent (that’s me if we work together!).