How do I check a bookstore’s old stock against what it still owes on invoices?

Begin with the supplier statements, not the seller’s summary. Ask for a current statement from each main publisher or distributor and a list of every unpaid invoice with its date. Then ask for the stock listing by title, with receiving date and last sale date if the till records them.

Match the two. An old invoice for titles that have not sold in a long time suggests the shop is paying for books it cannot move. Ask whether those titles are returnable, whether a return has been authorized, and whether credit has been issued or only promised. Unreturned slow titles can sit on both sides of the ledger.

Walk the shelves with the list and sample titles. Check for damaged copies, old editions and stock bought on consignment, since consigned books are not the shop’s to sell on to you. Ask your accountant how unpaid invoices and returns credits should be treated in the closing adjustments. Also ask about the shop’s ordering habits. Does it buy heavily at season start and pay late, or pay early for better terms? A pattern of stretched payments can show up in the invoices before it shows up anywhere else, so, with the seller’s consent, ask the suppliers how the account has behaved.

Key takeaways

• Get supplier statements directly or confirm them with the suppliers.
• Check each old invoice against what remains unsold on the shelf.
• Separate owned stock from consigned stock before agreeing what transfers.