How do I check a convenience store’s supplier delivery and invoice records?
Ask for a month of supplier invoices with the delivery slips that match them, and trace a few through to payment. Check who signs for deliveries, how short or damaged goods are credited, and which supplier accounts are behind. The paper trail shows how carefully the shop runs.
Convenience stores buy from many suppliers, some of whom deliver directly and stock the shelves themselves. Ask for a list of every supplier with the products it provides and how it is paid. Direct-delivery suppliers matter because the shop may be selling their goods before it has paid for them, which affects both cash and stock.
Take a handful of invoices and follow each one. Is there a delivery slip signed by staff? Does the invoice match what was received? Was a credit issued for damaged goods or short deliveries? Was the invoice paid on time, and from which account? A pile of unsigned slips or unpaid statements suggests that checks are loose, which can hide losses.
Ask also about supplier terms. Which suppliers give credit, which demand payment on delivery, and which have put the shop on hold before? Look for deals, rebates and incentives that depend on the owner’s name. Compare the amounts owing to suppliers with the accounts payable in the financial statements. Your accountant can help with that. If you plan to keep the suppliers, meet the key ones before closing, with the seller beside you for the first introduction.
Key takeaways
- Follow sample invoices from delivery slip through to payment.
- Ask which suppliers deliver and stock shelves on their own.
- Look for credits issued for damaged or short deliveries.
- Compare amounts owing to suppliers with the books.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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