Stock Audit for E-commerce Company

Stock Audits are essential for e-commerce companies to keep correct inventory records and ensure operational efficiency. According to industry figures, up to 43% of small businesses face inventory shrinkage, which costs them an average of 1.45% in lost sales each year. Regular stock audit help businesses reduce losses due to theft and errors while also improving overall inventory management. Businesses can streamline this process by using stock audit services, which ensures openness and reliability in their stock management operations. Bizfoc is a leading stock auditor company in India with a stock audit for e-commerce team with more than 10 years experience in fixed asset, inventory verification.

What is E-commerce Stock Audit Meaning?

E-commerce stock audit meaning includes but not limited to, professional assessment of a company's financial records to identify potential risks and difficulties. This includes evaluating accounting standards, stock analysis, and financial statements. Audits for stocks enable e-commerce businesses to establish compliance with applicable rules and regulations, as well as assess the correctness of their financial records. It also helps to identify operational concerns that could affect the profitability of e-commerce businesses. For business owners concerned about financial correctness, a trained accountant-prepared audit can provide the answers they need.

Benefits of Stock Audit for E-commerce Companies

• Checking and Comparing: Stock audit for e-commerce is important because it helps in checking and comparing the actual count of things in stock to the records that are accounted for and the variations that may or may not happen.
• Balance in Operations: An auditing for stock is necessary for the elimination of wasteful stock investments and maintains a balance in operations.
• Stocking Appropriately: Such audit indicates whether any physical commodity is under-stocked or overstocked which helps in stocking them up appropriately.
• Financial Health Determination: Stock audit for e-commerce helps in comparing the company data with the physical counts. Auditing provides an image of the current scenario of the owned stocks and the recorded stocks. This also provides knowledge of the financial health of the company.
• Reveals Faults if Any: Stock audit for e-commerce also reveals the existence of faults in warehouse practices either at receiving the stock or during its packaging.
• Stock Management: A regular auditing for stock can help organizations to manage the stock levels when they are too high which may lead to wasteful overstocking which also results in financial losses and poor cash flow.

Stock Audit Checklist for E-commerce Businesses

Stock audit checklist for e-commerce Businesses that is required to be followed for conducting an effective stock audit for e-commerce business is given below:

• Decide on scope of audit, time period as well as locations to be covered.
• Gather required stock / SKUs details against which stock needs to be verified
• Make sure that the stock auditor team in and out time to the premises must be recorded.
• Recording the physical counts of stock / SKUs
• Make sure that all the stock or SKUs covered in the SKUs must be covered
• Discuss and get the confirmation of the audits for stocks finding between unit in charge and stock auditor
• Present all of your findings as well as suggestions which can be useful for improvement.

Documents Required for the Stock Audit Procedure

Some of the very basic documents required for the stock audit procedure for e-commerce are discussed or provided below:

• Records of inventory
• Dates of stock audit for e-commerce
• Number of stock auditors required
• Address of stock audit for e-commerce locations
• Tentative quantity of SKUs at each location
• Any formats against which inventory is to be carried out
• Stock audit formats for final submission

Stock Audit Procedure for E-commerce Businesses

The Stock Audit Procedure for e-commerce business involves the following steps:

Step 1: Proper Stock Audit Planning

It is vital to understand the auditing scope, inventory categories, locations, and auditable goods. The timeline for stock audit for e-commerce businesses must be established, taking into account the company's function schedule. Proper policies and procedures for performing such audits must be drafted. The pre-auditing procedure requires the scope and objective to be defined properly so that accordingly stock audit for e-commerce can be performed without any kind of discrepancies.

Step 2: Physical Verification

Make sure to complete the physical verification of all the inventories in the warehouses or any other storage properly and with due care and caution. Ensure that no mistakes are made while doing physical verification of the inventories. This is one of the crucial steps of the inventory audit procedure. After completing the verification, make sure to re-verify the same in order to avoid any kind of mistake.

Step 3: Compare Physical and Book Inventory

After completing all the above steps for stock audit for e-commerce businesses, document everything after comparing both the physical as well as book inventory. This needs to be done in order to avoid any kind of ambiguity. Documentation includes all the details like recording of results of the auditing, recording discrepancies if any, observations of the auditor must be recorded properly, and lastly, prescribing the corrective measures.

Step 4: Prepare and Submit Stock Audit Report

Prepare a stock audit report for e-commerce detailing the findings from the stock audit, highlighting any irregularities discovered and providing suggestions for improvement. The report should include a summary for senior management, outlining key outcomes and recommending necessary actions. Make sure to follow the stock audit report format for e-commerce businesses properly.

Why Choose Bizfoc?

Bizfoc is an accounting firm which is the best for stock audit for e-commerce because they have a team of experienced professionals who not only have experience in inventory auditing but also have expertise in various other business domains. They will make your work easy and smooth. Hence in order to make sure that your stock audit for e-commerce is done properly, choose Bizfoc.

Conclusion

Stock auditing, also called inventory auditing, is done to ensure the correspondence of stock registry findings with the presence of the physical commodities. Stock audit for e-commerce helps in rechecking of the company records with their physical count. The inventory audit helps in ensuring accuracy in the operations of the stock and helps in avoiding errors. The stock audit for e-commerce auditing companies involves the reviewing of the financial records of the company by professionals which helps in identifying risks and issues that may occur in the upcoming days. Stock audit for e-commerce is essential to ensure the actual presence of stocks in accordance with the company's records and to eliminate the problems before they become a bigger issue for the company or organization.

Frequently Asked Questions (FAQs) on Stock Audit for E-commerce