How is a pet store’s stock counted when the store sells?

Pet store stock is not like stock in a hardware store. Much of it expires, some of it was ordered for a customer who has already paid, and some belongs to the supplier until it is returned. If the sale includes stock, how you count it should be decided in the agreement, not on closing day. Your lawyer writes the rule. These are the points to raise with them.

Dated food and treats

Food and treats carry best-before dates, and a buyer will not want to pay for what cannot be sold. Agree in advance how close to a date is too close, and who decides. A common approach is to count with both sides present and set aside anything past the agreed line. Agree a rule that is simple to apply.

Opened and damaged bags

Torn bags, dented cans and opened packages are part of daily life in a pet store. Decide whether they are counted, counted at a reduced amount or left out. Ask your accountant how the books treat them, so the count and the financial statements tell the same story.

Special orders, returns and raw food

Special orders that customers have paid for are a promise someone must keep after closing, so they should not be counted as ordinary stock. The same goes for goods you owe back to a supplier. Frozen and raw food needs its own look at temperature records and dates. Ask suppliers early whether they will take returns when the store changes hands.

• Who does the count, and on what date
• The rule for items near their dates
• How opened and damaged goods are treated
• Which paid orders and supplier returns are excluded