What is stocktaking (physical inventory count) and how does it work?
Stocktaking (also called a physical inventory count or stock count) is the process of physically counting the goods on your shelves and in your storeroom, comparing those numbers against your system records, and adjusting any differences. It keeps your stock figures honest so you do not sell items you no longer have or rebuy goods already sitting in the back room.
Stocktaking compares actual counted quantity on the shelf against recorded system quantity. If the physical count is lower you have a stock shortage (shrinkage), and if it is higher you have a surplus; approving the count updates system balances to match reality.
Why stock discrepancies happen and what they reveal
Even in a well-run shop, recorded stock levels gradually drift away from what is actually on the shelf. A stocktake does more than fix the number on screen: it uncovers operational leaks before they eat into your margin.
Before counting, always enter any pending purchase invoices or delivery notes and pause stock movements in the area being counted. That way you do not waste time chasing paper differences caused by unposted paperwork.
- Unrecorded or miskeyed transactions: supplier deliveries unpacked before the invoice was entered, or boxes confused with individual units
- Damage, spoilage and breakage: items dropped, leaked or past their shelf life that were thrown away without a stock write-off
- Mix-ups and theft: look-alike items scanned under the wrong barcode at checkout, or pilferage from open shelves
Full stocktake vs. cycle counting
A full stocktake counts every single product across the business at once, usually after trading hours at the end of a quarter or financial year. It gives a complete snapshot for accounting, but it takes hours of staff effort.
Cycle counting breaks the job into small, regular checks—such as counting one aisle, one product category, or your top twenty fast sellers every week without closing the shop. It catches errors early while the cause is still easy to trace.
How to record a stock count in GiroPS
In GiroPS, you start by opening a draft stock count for a chosen warehouse. Using your phone camera as a barcode scanner or selecting items from the list, you enter the actual quantities counted on the shelf; while the count stays in draft, live stock balances remain untouched so you can double-check surprises.
Once you verify the variances and approve the stock count, GiroPS automatically posts the adjustment movements and brings each product's available quantity into line with the physical count.
Practical scenario
Example: reconciling a shelf count in a hardware store
A hardware store counts its paint aisle on Saturday afternoon. The system shows 24 tins of white ceiling paint and 15 roller brushes. The physical count finds 22 tins of paint and 16 roller brushes. Checking the back room reveals 2 damaged paint tins were discarded last week without being written off, while 1 roller brush had been sold under the barcode of a similar brush size. Entering the counted quantities (22 and 16) into a GiroPS stock count and approving it reduces the paint by 2, increases the rollers by 1, and restores accurate stock records.
Frequently Asked Questions
How often should a small business do a stocktake?
Most shops perform a full physical count once or twice a year, combined with weekly or monthly cycle counts on fast-moving, high-value, or frequently missing items.
Can I keep selling while a stock count is in progress?
For clean figures, pause sales and deliveries for the specific shelf or category you are counting. If you cannot close the shop, count one small section at a time before opening or during quiet hours.
How does stocktaking work with multiple warehouses?
Each warehouse, shop branch, or delivery van is counted separately. Make sure any stock transfers between locations are completed before starting so the same goods are not counted twice or missed.