～Learn why stocktaking is essential for retailers in Singapore, from inventory visibility and financial closing to accurate profit calculation and transparent inventory valuation.～
Why Is Stocktaking Necessary?
Accurate inventory visibility is essential for successful retail operations.
In the retail industry, stocktaking is one of the most important tasks for maintaining healthy store management. Stocktaking can generally be divided into two types: book inventory, which refers to inventory recorded in accounting or inventory systems, and physical stocktaking, which involves counting actual products in stores, stockrooms, or warehouses.
The inventory shown in records does not always match the actual inventory on-site. To identify these gaps, retailers need to conduct a physical inventory count.
Stocktaking is not only about “counting accurately.” It must provide reliable data that can be used for business decisions. Integrity is also essential, as inventory figures should not be influenced by fraud, bias, or internal manipulation. One reason companies use third-party stocktaking services is that an independent provider can conduct fair and objective inventory checks from a neutral position.
For retailers in Singapore, where store efficiency, cost control, and inventory accuracy are becoming increasingly important, regular and reliable stocktaking plays a key role in supporting sustainable business growth.
Purpose of Stocktaking ①: Finalising Accounts and Profit
One of the main purposes of stocktaking is to determine the value of inventory required for financial closing. Without knowing how much stock a company holds at the end of an accounting period, it is difficult to calculate profit correctly.
Retail businesses purchase products and generate profit by selling them. However, not all purchased products are necessarily sold by the end of the period. By confirming the remaining inventory and determining its value, businesses can calculate the cost of goods sold and gross profit more accurately.
Once profit is properly determined, it becomes the basis for tax calculations, management reporting, and future business decisions. For this reason, stocktaking at financial closing is considered a fundamental business process in many countries and regions.
There are several inventory valuation methods, including the retail inventory method, specific identification method, average cost method, and first-in, first-out method. Since different methods can lead to different figures, companies should avoid changing valuation methods without careful consideration. Evaluating inventory based on consistent rules helps ensure transparency and credibility in business management.
For more information about our stocktaking services, please refer to the page below.
👉 Stocktaking Service – AJIS Singapore
Editor: AJIS Group
AJIS Group is a global corporate group led by AJIS Co., Ltd., which has been a leading provider of stocktaking services and retail support services in Japan. The Group operates in the United States, China, Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Thailand, Vietnam, and the Philippines.
With a proven track record of working with more than 3,000 companies and supporting a cumulative total of over one million stores annually, AJIS Group helps address a wide range of challenges faced by the retail and distribution industries. Its services include stocktaking, store operations support, sales floor improvement, and promotional support.
By providing practical services tailored to the market characteristics of each country and region, AJIS Group contributes to improving store operational efficiency and enhancing the value of sales floors.
