How Often Should Businesses Conduct Stocktakes?
Businesses should conduct stocktakes at regular intervals to keep their inventory accurate and up-to-date. The right frequency depends on the size and type of the business, as well as industry needs.
Annual Stocktakes
Most businesses conduct a full stocktake once a year. This is often done at the end of the financial year to match records for tax and accounting.
Periodic Stocktakes
Some businesses choose to count their stock more often. Retailers, for example, may perform quarterly or monthly stocktakes. This helps spot issues early, such as theft, errors, or damaged goods.
Cycle Counting
Larger businesses may use cycle counting. This means checking a small part of the inventory each week or month. Over time, all items get counted without a full shutdown for a stocktake.
Choosing the Right Frequency
- Small businesses: Annual or bi-annual stocktakes may be enough.
- Retail or high-value stock: Consider monthly or quarterly checks.
- High turnover: Cycle counting works well.
Key Points
- Regular stocktakes prevent errors and loss.
- The frequency should match your business needs and resources.
- A mix of full and partial stocktakes can give the best results.
Review your processes each year to see if your stocktake routine still fits your business.
