Florist News

This is a question put to all who would like to give their comment on it...the more ~ the better......

How do you all "administrate" the wastage of your flowers......

1) How can you deduct them from the VAT bill?
2) Which agreements/possibilities are out there with accountants?
3) easiest method(s) to keep track of it...( any recommendations in computer systems?)
4)...and A N Y T H I N G worth knowing about it ( acceptable %age; which/any tax - deductions possible?

PLEASE GIVE US YOUR ENTIRE K N O W H O W

Many thanks!

Not too sure where you're coming from here?
Which V.A.T. retail scheme are you using?

The most common one is where you;
a: Buy your stock and reclaim any vat you have paid
b: Sell your stock and give customs & excise the vat element of the total sales figure.

How much stock you throw away doesn't really come into it. Yes, it has an effect on your total sales figure, so ultimately affects the amount of vat you pay, but does not figure as an individual item in the calculations. Just like discounts, price cuts, pilferage, shortages etc...they all contribute in some way to the total 'actual ' sales.

The only time a 'wastage' record may come in handy is if you ever had to go through a vat inspection and the inspector thought you were not making enough money. This record may help to answer questions. But, I doubt it would be taken with more than a pinch of salt. Let's face it..anyone can write up a book each week with random amounts of flower that were 'presumably' lost. It doesn't prove anything.

For your own peace of mind, a 'wastage' record can be helpful when analysing your buying habits, but to be honest, if you're in the shop all day, you will inevitably know which flowers sell and which end up in the bin. If you're an absentee owner, then you would be relying on your staff to 'own up' to everything they threw out.

In some ways you may find that keeping a record helps to keep your staff more aware of the impact of waste and how it needs to be monitored.

__________________

I knew you'd answer this one fly, you've been very quiet just lately but I thought this would bring you out of the wood work! (or in off the beach)

when I first opened my shop I kept a list of what we threw away on a daily/weekly basis, like you said fly to keep track of what goes and what doesn't. It helped cuz after a few weeks I knew what I always had to have-the basics-and when was the best time to have some more interesting stuff on hand. I realized quickly that I didn't need to have ALL my vases filled on a Tuesday afternoon but better have the choices on Fridays. Also it helped my staff in keeping an eye on what really was garbage and what we could still use for funerals etc......

__________________
~success is a lousy teacher...it seduces smart people into thinking they can't lose~

I spoke to my accountant about this a while ago, as i was convinced that i'd heard somewhere you could 'claim back' against your tax bill for wastage, but apparently not.
Nothing you can do about it except try and reduce wastage to increase profitability.
we tracked it for a little while (VERY scary when you add up a bucket full of stems and it comes to £60/£70/£80 that you're about to put in the bin!!!!!!!!) and as said before, it helped staff realise how much they were wasting plus helped me buy more efficiently (not getting a couple more bunches of xanth "just in case" or a wrap of roses "coz they looked nice"!)
so its a good idea to track it for your own use, but diddly squat you can use it for financially.

S

__________________

Thanks ARUMflowers, so no claiming back - but how about the VAT ...do you have to pay VAT of 17.5% on all your wastage? Please let me know.

Thanks!

Thank god for the scranny bucket!

I am lucky that my supplier gives me flowers that last very well, so I know almost to the day when they will keel over.

So my flowers are arranged thus - freshest out front, week olds kept in the back for cheap bunches, posies/baskets for graves (this time of year the freshest of flowers will droop after a day anyway) but given the right conditions outside will last for at least a week, and those with only a few days life in them are given to my two trainees to practice with - hey I had to work with c...p in college so they can do the same - will make them appreciate the good flowers more!

Luckily (after the last month that I had which we won't even talk about) I have nothing in the scranny bucket and very little suitable for cheap posies - maybe things are picking up a bit.

I think its just important to ensure you don't have more than 5-10% wastage at any one time - use it up somehow! Even cheap bunches if needs must. But don't let them get old enough that people compare you with a garage!

Sure hope I am not tempting fate here!

What's the old saying ... It's a sin to put it in the bin.

__________________


www.willowsfloristry.co.uk

Got it in one pixie

can't help you with the VAT questions - fortunately i have nothing to do with it (yet!)

__________________