![]() ![]() ![]() Over time, cycle counts will audit everything you’ve got on hand, but it could take a whole year to achieve this. On the other hand, an inventory cycle count audits a small portion of inventory, a little bit at a time. What’s the difference between year-end inventory and an inventory cycle count?Ī physical, year-end inventory is performed annually to verify that all the inventory you actually have on hand matches the numbers in your inventory management system. ![]() While most businesses perform this physical inventory count at the end of the calendar year, mid-year is also a common choice-as long as that works for your accountant and your business tax returns. And, while you’re at it, you’ll have a chance to get your inventory organized for the new year. You’ll also have the data you need to detect inventory shrinkage and forecast what inventory you might need in the year ahead. A business will usually need to pause operations while performing this annual audit to ensure an accurate snapshot of available inventory.īy getting an accurate look at what’s in your company’s inventory, you’ll be able to comply with tax requirements, corporate audits and provide accurate data to your accounting team. It should be a comprehensive review and include all the different types of inventory. We’ll also cover how inventory apps can make your yearly counts that much easier.Ī year-end inventory count reveals just how much available inventory value your business has on hand at the end of the year. We’ll also help you understand the difference between a year-end inventory and a cycle count, what to do if you’ve got more stuff than you can possibly count, and how what your annual audit reveals can help you forecast demand for the year ahead. In this article, we’ll dive into the importance of a year-end inventory count and explain exactly how to calculate your end-of-year inventory. Whether you run an auto body shop, a retail store, or a law firm, taking a year-end inventory can help your business close the books on the past twelve months while getting organized for the year ahead. ![]()
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