In Australia, June 30 marks the end of the financial year for most businesses. It’s a time when many of us are busy finalising the affairs of the last 12 months, whilst also giving thought to the potential of the coming year.
So with just under two months to go, what are some key points that hospitality and food retail operators can give thought to, with the aim of prepared for this busy period?
Getting ready for stocktake
Businesses that carry an inventory of merchandise will in all likelihood need to physically count their stock and value it for the sake of financial reporting. This stocktake also provides an excellent opportunity for proprietors to analyse inventory performance over the last 12 months to see if improvements can be made in stock management. However, depending on the size of the inventory, stocktake can be a massive undertaking, and quite often is difficult to manage whilst keeping the business operational.
- What systems need to be put in place to ensure the stocktake is accurate?
- Are your records of inventory costs up-to-date?
- Will extra staff be needed to perform the work, or will overtime be required to get the job done outside of business hours?
- If you use software or equipment to aid with your stocktake, is it ready to go?
- If you use Portable Data Terminals for stocktaking, are they programmed with the current inventory?
Giving these questions some thought now can save last minute stress as you’ll have your systems and staff organised and ready to go, ensuring that the stocktake can take place as efficiently and effectively as possible.
Promotions to move old stock
In an effort to move on redundant stock and count fewer items on ‘stocktake night’, many businesses consider having an end-of-financial-year promotion. If that is your plan, is your EOFY sale organised?
A brief analysis of what you currently have in stock will help you to decide what to promote. For instance, if you have items in your inventory that have been superseded by the manufacturer or that you no longer plan to sell, moving them in a promotion now so that you have none in your inventory for the new financial year makes excellent sense. Or perhaps you have certain product lines that are overstocked. Adding them to your promotion will hopefully reduce your stock holding to a sustainable level.
Once you have decided on what to promote, price changes need to be programmed at your point of sale. Your POS management software will likely have the ability to set up special promotional pricing for a set period. This will mean that you can prepare the promotion ahead of time to be enabled in your cash registers or POS terminals for the desired period in the lead up to June 30. Do shelf labels and marketing material also need to be produced to support your EOFY promotion? Now is the time to give these matters some preparatory consideration.
Implementing improved business systems
Something else to consider now is whether there are any changes you’d like to make to improve your business in the new financial year. Why is this important? Because new systems and processes take time to set up and implement, so rather than being in a mad rush in the final days leading up to June 30, why not give thought to it now?
- Do you want to install a new accounting system, or change the way your current system works?
- Do you want to implement proper stock control?
- Do you want to make changes to your cash registers or POS terminals?
- Do you need to get advice from your accountant, IT support or POS supplier?
All of these ideas take forethought and time to introduce. New work procedures will need to be put in place and staff will need training on the new systems. So you can understand why it’s best to get this done sooner rather than later, allowing you to get to July 1 and be ready to launch into the new financial year in the best position possible.
The aim of this article has been to get hospitality and food retail operators to think about these things now and start the ball rolling, rather than getting to the end of June and having yourself, your staff and your suppliers under unnecessary pressure. The end of the financial year is often a very busy period, so being prepared now will make a big difference to how your business copes with the months ahead.
For Lynx Software users: If POSLynx can aid you in getting ready for June 30, please let us know. We can assist you with stocktake preparedness, setting up your EOFY promotions and implementing or improving your POS system or stock control processes. Please send us an email and let us know how we can help.