Inventory December 15, 2024 2 min read

Year-End Stock Count: A Checklist for Small Businesses

End-of-year stocktaking doesn't have to be painful. Use this checklist to reconcile your physical count with Inventino's records in under a day.

The year-end stock count is one of those tasks every business owner dreads — but it doesn't have to be a multi-day nightmare. With the right preparation and a clear process, a small-to-medium business can complete a full stock count in a single day.

Here's a proven checklist.

One Week Before Count Day

  • [ ] Freeze purchases. Stop receiving new stock at least 3 days before the count date so incoming goods don't blur your picture.
  • [ ] Process all outstanding sales. Every sale up to the count date should be entered into Inventino before you count.
  • [ ] Print your stock report. Generate the full stock list from Inventino. This is your expected ("book") count.
  • [ ] Organise the stockroom. Group products by category, ensure items are clearly labelled. Unknown or unlabelled items will slow you down.
  • [ ] Assign counting teams. Each team of 2 handles a section — one counts, one records.

On Count Day

  • [ ] Count before opening. Ideally do this before the business opens or after it closes to avoid movement during the count.
  • [ ] Use printed count sheets. Give each team a pre-printed sheet with product names and spaces to record physical count.
  • [ ] Count twice. Each section should be counted by two independent people. Discrepancies trigger a third count.
  • [ ] Note condition. Flag any damaged, expired, or unsaleable items separately.

After the Count

  • [ ] Enter physical counts into Inventino's stock adjustment screen.
  • [ ] Review variances. The system will highlight items where physical and book counts differ.
  • [ ] Investigate large variances before posting. Common causes: theft, breakage, double-entry, unprocessed returns.
  • [ ] Post adjustments. Once satisfied, post the inventory adjustment. This updates your stock levels and records a gain or loss.
  • [ ] Write off damaged/expired goods. Create a separate adjustment entry for unsaleable items.
  • [ ] File your count sheets. Keep physical records for audit purposes for at least 5 years.

Common Causes of Stock Discrepancies

| Cause | Prevention | |----------------------------------------|--------------------------------------| | Unrecorded returns from customers | Always process returns in the system | | Staff consumption / breakage | Use internal transfer records | | Theft (internal or external) | Restrict POS access by role | | Supplier short-shipping | Count deliveries on arrival | | System error / duplicate entries | Audit purchase and sale records |


A clean year-end stock count gives you accurate closing inventory for your accounts, a clear view of shrinkage, and a solid starting point for the new year. Inventino's inventory adjustment module makes the posting process fast and fully auditable.

stock count year end audit checklist

Related Articles

Ready to Take Control of Your Inventory?

Join thousands of Nigerian businesses using Inventino to manage stock, sales, and growth.