How to Prepare for a Successful Stocktake

stocktake

Accurately confirming the stock on hand within your business is essential. Effective stocktaking helps identify variances and quickly highlights issues with stock management and control. Understanding stock movements allows you to make informed decisions about damaged items, theft, slow-moving stock, and warehouse processes.

To ensure your stocktake runs smoothly, it’s important to be fully prepared. Follow these key steps:

1. Identify Stock Ownership and Location

Clarify which stock is owned by the business and where it is located.

  • Identify stock that has been invoiced to a customer but not yet dispatched, and is still held in the warehouse or store.

  • Also flag stock that has been received but not yet recorded in your system.

  • Ensure all stock held offsite or on a consignment basis is accounted for.

2. Organise the Stockroom

A clean, well-organised stockroom is critical for an efficient stocktake.

  • Clearly label shelves to show both the stock type and its location.

  • Provide clear instructions to stock counters, including the direction in which they should count (e.g. from a designated starting point to a specific end point).

3. Ensure All Tools for Stocktaking Are Available

Prepare the necessary tools in advance:

  • Stock sheets – used to record stock quantities per item.

  • Write-off sheets – to note damaged stock during the count.

  • Manual count sheets – for use when barcodes are not available and items must be counted by hand.

  • Calculator – useful for checking totals and calculating variances.

  • Handheld scanners – to scan barcoded stock where applicable.

4. Minimise Distractions

Distractions increase the risk of errors. Do not allow:

  • Radios

  • Mobile phones

  • Music devices (e.g. iPods)

  • Idle conversation

Keeping focus during the stocktake is essential.

5. Count Every Single Item – No Estimations

Never estimate. Even if you believe you know your stock levels, every item must be counted.

  • Always open boxes and verify the contents. A label stating “75 items” is not a guarantee of what’s actually inside.

6. Reconcile and Investigate Variances

After the physical stock count is complete:

  • Compare the count with current accounting records.

  • Investigate any discrepancies thoroughly and document all variances.

7. Update Stock Records

Once the stocktake is complete and verified, update your stock records in your accounting or inventory management system.

A well-planned and properly executed stocktake minimises disruption, ensures accurate records, and provides a strong foundation for strategic decision-making.

Related Services: U Count: Self-Scan Stocktaking Solution