How to prepare for an inventory count: the complete checklist
Half of a good inventory is won before the first barcode is scanned. This is the checklist we use with our clients so the count is fast, accurate and surprise-free.
Two weeks before
Define scope and date
What will be counted (the whole store, the warehouse, some categories only, fixed assets), on what date and at what hours. For a year-end count, remember December and January are high-demand months.
Prepare your item and location master
Export from your system the item list (code, barcode, description, unit) and, if applicable, locations. Agree the format with the inventory company: a file that doesn't meet the format should be flagged and fixed before the count, not silently "patched".
Check barcodes
Products without barcodes, with duplicated or unreadable codes slow the count down. Identify them and decide how they will be labeled.
A few days before
Organize and group
Each item in one place when possible, boxes labeled, locations identified. Separate and mark damaged, expired, consignment or non-inventory goods.
Plan the movement cut-off
Decide until what time orders are received and shipped, how sales are handled during the count and who authorizes exceptions.
Name an owner
Someone on your team who knows the operation, answers questions on the spot and approves recounts.
On count day
- Movements frozen or controlled.
- Access open to every area to be counted.
- Pending receipts set aside and identified.
- The owner available for the whole count.
After the count
Review the variance report by item and location, request recounts where needed and adjust your system only with the final reconciled report. Keep the report as support for your accountant and auditor.
Frequently asked questions
Do I have to close the business for the inventory?
Not always. You can count after hours, by section or with cycle counts; what matters is controlling movements while counting.
What file does the inventory company need?
The item master (and location master if applicable) exported from your system, in the format agreed during planning.
What do I do with damaged or expired goods?
Separate and mark it before the count so it is counted separately and doesn't distort available stock.