The taxman is now watching your stock.

Not just your sales.

KRA recently issued a public notice requiring businesses using eTIMS to maintain accurate and up-to-date stock records in accordance with the law.

And this matters.

Because your stock is no longer just an operational issue.

It's becoming part of your tax compliance story.

Here's what you need to be able to account for:

📌 Goods you purchase or receive

📌 Goods you sell

📌 Stock transferred between locations

📌 Goods returned

📌 Stock adjustments

📌 Goods disposed of

In simple terms:

KRA wants your stock records to show what is actually happening to your goods.

And eTIMS already has stock-management functionality covering things like inventory, stock movements, opening and closing stock, purchases and sales.

So why should a founder care?

Because your numbers need to tell one consistent story.

Imagine you:

👉 Buy 100 units.

👉 Sell 70.

👉 Return 5.

👉 Transfer 10 to another branch.

You should be able to explain what happened to the remaining stock.

And this is where many businesses may struggle.

Not necessarily because they're deliberately doing anything wrong.

But because the records are incomplete.

A purchase wasn't captured properly.

A return wasn't recorded.

Damaged stock wasn't adjusted.

A branch transfer wasn't documented.

The physical stock doesn't match the records.

And nobody notices until there's a problem.

Your purchases.

Your sales.

Your stock movements.

Your invoices.

Your accounting records.

They should all make sense together.

That's the bigger reason this matters.

The stock-management functionality is intended to support compliance and improve the accuracy of tax returns and reporting.

So don't wait for your records to expose the gaps.

Start preparing now.

1️⃣ Review your stock records.

Can you account for what came in, what went out and what should still be there?

2️⃣ Reconcile your physical stock.

If the numbers don't agree, investigate the difference.

3️⃣ Review your processes.

Are purchases, sales, returns, damages, transfers and disposals being recorded consistently?

4️⃣ Make sure your bookkeeping and invoicing systems tell the same story.

Because here's the bigger lesson:

Your stock isn't just sitting on a shelf.

It's sitting inside your financial records.

And increasingly, those records need to be able to explain themselves.

KRA is also giving businesses an opportunity to understand the new stock-management functionality through its consultative process.

Use that window to prepare.

Don't wait until someone asks:

“Where did the stock go?”

Because by then, “I don't know” is already an expensive answer.