A physical inventory count is a crucial process that helps businesses ensure that their physical inventory matches the inventory listed in their records.
Why is taking a physical inventory count important?
Your POS tells you what you sold, and your accounting software lets you know what you should have. However, unless you perform a physical count, you could be missing the capturing of valuable data.
A Calendar Count involves counting all items in stock to create a company audit. Often done yearly to reconcile at tax time, but with proper organization and a digital solution, quarterly or semi-annually would provide critical insights before year-end.
Counting inventory does not mean that you have to close your doors and complete a store-wide count. Here are some counting options that provide valuable insight without you having to close your doors.
Cycle Count involves regularly counting a portion of your inventory with the goal of counting every item over a period of time. Cycle counts allow for more frequent and accurate tracking of inventory levels without counting your entire inventory all at once.
Count-to-order can help you accurately order what you need to keep your supplies stocked so production and sales can run smoothly. Completed more frequently, counting to order is a fundamental process in any business that ensures you order what you need daily, weekly, or monthly.
The Top Item Count involves identifying your business's most frequently sold or popular items. It is best performed weekly or monthly. This can help improve customer satisfaction, increase sales, reduce waste, and save money by avoiding overstocking less popular items.
Finding what works for your business is critical to counting inventory. Many companies use software systems to track and analyze inventory data; however, physical counting remains paper-based. Look for solutions that allow you to count what you want when you want and create clear and accurate reports and spreadsheets to share the data.
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