Why it matters
For most businesses, a stocktake at least once a year is an accounting obligation. It is used to value the stock on the balance sheet and to correct the discrepancies between what the software says and what is actually on the shelves.
Before the count
- Set the date and let customers and suppliers know if activity will slow down.
- Tidy up and group identical items together. Check the labels.
- Process pending receipts and deliveries before you start.
- Divide the warehouse into zones and prepare a count list for each zone.
- Organise the teams in pairs: one person counts, the other records or scans.
Is this an issue for your business?
During the count
- Count blind. The lists do not show the expected quantity, to avoid “finding” the right figure.
- Use a scanner or a tablet. Less copying out, fewer reading errors.
- Stop or isolate movements. Anything that comes in or goes out during the count must be clearly identified.
- Recount significant discrepancies before validating, preferably with a different team.
After the count
Analyse the discrepancies rather than simply correcting them. A recurring discrepancy in the same product family often points to a movement that is not being recorded. Then validate the quantities, value the stock and send the result to your accountant.
What if you counted a little all year round?
Cycle counting means regularly counting part of the stock, by zone or by product family, counting important items more often. Discrepancies are spotted earlier and the year-end stocktake becomes lighter. Check with your accountant how far it can lighten the annual stocktake.
