Here are some rules to follow to ensure your stock count runs smoothly:
1. Establish Which Stock Your Business Owns and Its Location
First, identify stock that has already been invoiced to a customer but hasn’t yet been received and remains in the warehouse/store. Furthermore, identify any stock received within the warehouse/store but not yet recorded. You must also account for stock held at different locations or on consignment basis. This ensures complete visibility.
2. Maintain a Clean and Tidy Stock Room
To ensure accuracy, maintain a clean and tidy stock room. Clearly lay out stock items, and attach labels to shelves to clearly identify different types of inventory and their locations – for example, labels will show where the stock is located as well as the type of stock. Moreover, give your stock counters clear guidance on the direction they should count; for example, instruct them to start from a specific location and end in a specific location.
3. Tools Required for the Stocktake
- Stock Sheets: Utilise stock sheets to record the stock numbers against each stock item.
- Write-off Sheets: Always check the condition of the stock as you count and make notes regarding any damage.
- Manual Count: When items lack barcodes, conduct a manual count by carefully counting each item and logging it in writing.
- Calculator: Use a calculator to add total numbers and check variances.
- Handheld Scanners: Employ handheld scanners for barcoded stock only.
4. Minimise Distractions
To avoid errors, do not allow radios, mobile phones, or idle chatting during the stocktaking process.
5. Count Every Item Accurately
Never estimate! It might seem tedious, especially if you think you have a good idea of your stock quantities, but it is so much better to get a 100 percent accurate record the first time. Always physically open boxes – just because the label on the box says there are 75 items in the box that does not mean there actually are.
6. Verify Stock Against Records
Check the physical stock count against your current accounting records. Always recheck discrepancies to ensure accuracy and investigate the reasons for any variances. Make a note of all variances and follow up where necessary.
7. Update Your Records
After completing the stock count, update your stock records in your accounting system.
