What can do Accountant When Physical Stock does not Match with Actual Stock

 

When the company owner finds that physical stock does not match with book value of stock, it is important to audit this with expert. 

1. Check the Accounts Record for Mistakes 

Sometime, there may be mistakes in accountant's made account. Instead accountant taking tension, he should self audit of accounts before independent audit. There may be lack of accuracy in purchase records or sales record or closing stock book value. In this process, mistake can be found by him. 

2. Count the Stock Again

Sometime, stock may be big and there may mistake in our counting system, So, count again and compare it with accounts. For example, we have counted in books in Kg but we are counting physical stock in units. So, please keep equal units both side for getting equal results. 

3. Note the Differences  of Physical and Book quantity of Stocks

Investigate whether some stock destroy due to dead or waste due to production process or theft somebody or misplace. 

If theft, there may be clue. If misplace, see other place, your may find stolen stock. 

4. Co-operation with Independent Auditor

Sometime, owner can appoint independent auditor to audit this. So, accountant should help in his investigation and inform what he knows. 

5. Try to Find Weakness of Internal Control System

If accountant has any doubt, he can note the owner these internal weakness in control system. Like 

No security guard near store. 

Store is in lonely place 

Lack of proper employees to complete the task

Software hacking issue which shows wrong data even record proper. 

6. Connect with Other Department

Accountant should connect with sales, production, marketing, repair and other branch department. To give notice whether they take any stock without record. If get any fact, note it to show to boss. 

Final Words 

Whether accountant or owner, this event is stressful both has to accept it. Do action what they improve in future. Both wants to become happy. If both wants to happy, they need to know its secret at here.