How should I value my café's stock at year end — FIFO, average cost, or does it even matter for a small limited company?

Hi Oliver, good question — and yes, it does matter, though at a couple of thousand pounds the choice of method won't move the needle much. The key rule is to pick one cost formula (FIFO or weighted average cost) and apply it consistently from year to year, valuing stock at the lower of cost and net realisable value. That's the FRS 102 requirement, and FRS 105 for micro-entities follows the same principle. FIFO often suits a café because it mirrors how perishables like milk actually get used, but weighted average is equally acceptable if it's simpler to calculate. Just don't switch methods between years to manage profit — the method must be applied consistently, and do keep a short note of the method in your year-end working papers.