Stock records drift from reality a little every day. A regular routine keeps the gap small enough to trust, and it is easier than one painful annual count.
Full count
You count everything on one day, usually after closing. It is thorough, but it stops trading and tires people, so most small businesses do it once or twice a year.
Cycle counts
You count a small section each week, such as the fast moving items on Monday and a shelf on Friday. Over a month everything is checked, and errors are found while you still remember the cause.
Make counts count
A count only helps if you act on it.
- Count blind, without looking at the system figure
- Recount large differences
- Record the reason for each adjustment
- Fix the cause, such as receiving or theft, not only the number