For our small business clients which hold inventory, a common question we are asked is; (i) do I need to conduct a stocktake and if, so (ii) how often do I need to conduct a stocktake.
If you are a small business entity you can choose not to conduct a stocktake, as long as the change in value of your trading stock is $5,000 or less between;
- the value of stock on hand at the start of the income year
- a reasonable estimate of the value of stock on hand at the end of that year
However, if the value of your trading stock changes by more than $5000, you must conduct a stocktake. Continue reading “Tax Tip Tuesday: Does my small business need an inventory stocktake?”