Case Study - Liquor Stock Takes

INSTRUCTIONS FROM CLIENT:- To provide an independent monthly liquor stock audit to ascertain overall performance of the business with a view to identifying any problem areas & look at ways to improve overall profitability of the business.

ACTION TAKEN:- On the day of the audit all liquor stock was counted; paperwork including delivery notes, invoices, wastage sheets, income reports & the Z2 till report were seen & information taken from them. This information generated computerised reports including a detailed report by product which gave the following information:-

• Product
• Size
• Cost price per product
• Opening & Closing stock levels per product
• Sales at cost & at retail per product
• GP per product

A summary report was generated which included the following information:-

• Estimated result & estimated GP
• Actual result & actual GP
• Surplus/deficit & actual GP
• Yield

A deficit of £1150 was shown as the Actual Deficit & after doing a till reconciliation with the Client’s Z2 till report figures against the computer generated reports. This cross referencing of information produced by the Client with the stock taker’s reports allows existing Client information to be used in a more meaningful manner. The deficit was shown to be mainly down to draught beer sales, in particular against two products & also a shortfall against Vodka sales.

RECOMMENDATIONS:– Discussion with Client as regards the draught deficit about cellar management, excessive fobbing of beers, staff drinks, whether kegs/casks have been lent out etc. As regards the deficit on vodka sales, was a bottle lent out, dropped & not recorded, cellar security, ‘free’ drinks or till security in general etc.

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