Solution
Stocktaking: definition, types and process
Stocktaking (physical inventory) is counting, measuring or weighing the actual stock on hand and reconciling it with the book stock in the system. Businesses that keep formal accounts are typically required to take physical inventory periodically for their financial statements. Depending on the method, you distinguish periodic stocktaking, perpetual inventory and cycle counting.
Last updated: · Lavesy editorial team
Sound familiar?
- The annual count eats a whole weekend with paper lists and tally sheets.
- Counting and transcription errors make the result unreliable.
- Without a maintained book stock, every discrepancy is a mystery.
How Lavesy helps
Count by scanning
Scan the item, type the counted quantity – no paper and no transcription errors.
Book stock always current
If you post continuously, stocktaking becomes reconciliation, not re-entry.
Discrepancies immediately visible
Differences between counted and book stock are shown per item and corrected.
Perpetual inventory possible
With a complete movement history you can spread counting across the year.
How it works
- 1Define counting areas (storage locations, zones, shelves).
- 2Count stock by smartphone scan and record it.
- 3Review and explain deviations from book stock.
- 4Post corrections – with user and timestamp in the audit log.
Frequently asked questions
What is stocktaking?
The physical count of all stock (counting, measuring, weighing) at a given date and its reconciliation with the book stock.
What types of stocktaking are there?
Periodic stocktaking (at the balance-sheet date), perpetual inventory (continuous throughout the year) and cycle counting (statistical sampling).
Is stocktaking mandatory?
Businesses that prepare formal financial statements generally have to verify their inventory periodically; exact rules depend on your jurisdiction. The overview is worth it either way.