Cycle counting: count a little every week instead of everything once a year
A full stock count often means closing and counting everything at once. Cycle counting spreads the work over the year: a little every week, without stopping sales.
The principle
You split the stock into groups (by shelf, category or supplier) and count one or two each week, in a fixed order. In a month or two, all the stock has been reviewed, and mistakes are fixed before they grow.
Its advantages
- No exceptional closure of the shop.
- Discrepancies are spotted sooner, so easier to explain.
- Counting is more reliable: you count little, but well.
- Expensive items or those that disappear easily can be counted more often.
Setting up the method
- List the product groups and give them an order.
- Rank them: expensive or fragile items every week, everyday items every month, rare items twice a year.
- Choose a calm, fixed moment (before opening, for example).
- Count, record the real quantity, correct the stock and keep a record of the gap.
- Look for the cause of large gaps before correcting them.
Still do a full count from time to time
Cycle counting does not remove the full inventory: do at least one a year, notably for the total stock value and your accountant’s needs.
Counting with Kaislo
In Kaislo, open Stock, tap the item and enter the counted quantity: the stock is corrected and the gap stays in the history. Products to count first can be spotted with the low-stock alerts.
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Cycle counting: count a little every week instead of everything once a year
How often should each product be counted?
According to its value and risk of loss: every week for expensive items, every month for everyday ones, twice a year for rare ones.
Does cycle counting replace the annual stock count?
It makes it easier but does not always replace it: keep at least one full count a year.