Stock Take
Also called: stocktake, physical stock count, physical count
What is Stock Take?
A stock take is a physical count of everything held, compared against what the records say should be there. The difference is shrinkage, and the count itself resets the book position to reality.
Why Stock Take matters
Without a count, cost of goods sold is an estimate and gross profit is a guess. Most inventory problems are only discovered through counting, usually later than anyone would like.
Stock Take formula
Shrinkage = Book quantity − Counted quantity
Valued at cost, this is the loss for the period.
How Stock Take works in practice
Count when the shop is closed or trading is stopped, in a fixed sequence, with two people on high-value lines. Investigate large differences before adjusting rather than posting the adjustment and moving on.
Frequently asked questions
Full counts monthly or quarterly, with weekly cycle counts on high-value or fast-moving lines.