Whisking Through Your Warehouse Audits: 5 Simple Steps for Smooth HMRC Inspections

False information. Missing documents. Looming penalties.  

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Sounds like a rather rugged dram, right?

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Follow these easy steps to steer clear of these issues during HMRC warehouse audits.

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#1 Turn paper to pixels

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They say if it ain't broke, don't fix it. And yes, paper serves its purpose of holding key information. But that's where its usefulness ends.  

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The data it contains is usually scattered across multiple filing cabinets, and in multiple locations, causing long, manual searches with no assurance of success.  

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Tedious shuffling, piling, and discarding, hoping you finally discover what HMRC requested to see.  

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Almost 75% of time spent dealing with paper-based information is lost in searching (Coopers & Lybrand).

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Or perhaps your paper is stored in a loose-leaf record? Lose this, lose everything. There are no backups.

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Instead, digitalise your documents so they can be stored, retrieved, and duplicated unlimited times within a centralised digital vault.  

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#2 Distillery data discipline

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Make it a monthly habit for your production, inventory, sales and finance teams to check they have an accurate and up-to-date record of everything your distillery needs to present to HMRC.

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This ensures you can proactively gather any missing data, preventing future difficulties in finding items as your document loads expand.

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You must also address human errors promptly. Team members might be updating documents without noticing changes in laws and regulations.

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Or they might miss varying tax rates for different countries as your distribution grows wider. Regular checks help you catch these slip-ups faster.

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#3 Let’s raise a toast to simple tech

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Technology can soon become a hurdle, especially if HMRC struggles to understand how it works.  

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So, consider software that streamlines information storage and control, such as an ERP system like NetSuite.  

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It encompasses modules for finance, supply chains, warehouse management, and sales, offering a consolidated overview of each team’s activity at your distillery in one system.  

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This uniform interface and functionality will assist HMRC in navigating your records efficiently.

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#4 Unified brews, unified views

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If there are departments operating outside your ERP system, ensure that all additional software they use plays well with this.

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An integrated approach allows other departments to keep using their preferred systems, more suited to their roles, knowing all their activity seamlessly syncs with your core back-office system.

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Now, you can confidently present information to HMRC while still using multiple systems, without worrying about conflicting data.

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#5 Keep pouring that transparency

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Use software that creates a clear audit trail including all stakeholder names, timestamps, and surrounding communication for all document sharing, access and changes.

You can then backtrack activity and see who is responsible for a discrepancy brought to your attention by HMRC.

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Moreover, this also saves time and resources by giving a clear picture in one place, removing a chaotic scramble across multiple systems only holding a small piece of the puzzle.

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Summary

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Navigating your warehouse audits without stress requires a finely crafted blend of...

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• Digital transformation
• Disciplined document management
• Intuitive software  
• Connected tech
• Transparent processes

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You’re Invited to the 2024 Whisky Leader Event Hosted by Catalyst ERP

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Implementing a distillery-specific ERP system is crucial for maintaining efficiency and compliance during audits, especially with the Whisky market growing at a CAGR of 4.3% in 2024.

Our friends, Catalyst ERP are inviting like-minded experts for two days of exclusive ERP insights, networking opportunities, and a celebration of the rich culture of whisky.

Register your interest 

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Dates: 19^th-20^th June 2024 
 

Registration Options 

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Day 1: Golf at Dalmahoy 

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Tee off the event with a round of golf at the renowned Dalmahoy Golf Course. Perfect for unwinding and making new connections. 

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Day 2: Whisky Leaders Networking Event 

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Hosted at the Scottish Whisky Experience, day 2 is filled with insightful talks and demos, and the exclusive Ardgowan Case Study. 

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Both Days: Don't miss a moment of the action

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Register for both days and enjoy a complete Whisky Leaders experience. 

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