What is cycle counting?

Counting a subset of stock on a rotating schedule instead of everything at once.

How often should I count?

Count high-value items more often, for example A monthly, B quarterly, C yearly.

What is a blind count?

Counting without seeing the system quantity.

Do I still need an annual count?

Many businesses still do one for statutory or audit reasons.

Cycle Counting vs Physical Stock Taking

A full physical stocktake closes the shop for a day. Cycle counting spreads the work through the year. Each has a place.

The difference

	Cycle count	Full physical count
Scope	A part of the stock at a time	All stock at once
Disruption	Low, can continue trading	High, often closes operations
Frequency	Rolling: daily, weekly or monthly	Once or twice a year
Best for	Continuous accuracy, finding causes	Year-end audit, statutory needs

How to schedule cycle counts

Count by value class (see ABC analysis): A items monthly, B quarterly, C once or twice a year. Also count any item after a suspicious variance or a big stock-out.

Good counting practice

Blind counts: do not show counters the system quantity
Count in a frozen window, with no movement during the count
Recount large variances before adjusting
Investigate causes, not just adjust
Get a second person to approve adjustments

Handling variances

Recount if above your threshold.
Check recent documents for the item (receipts, sales, transfers).
Find the cause: wrong item, missing entry, damage, theft.
Post an adjustment with a reason; it needs approval above a limit.

In NexoraIMS

Counts can be per warehouse and category, blind, barcode-driven, with a recount threshold and maker-checker adjustments. See stock audit and cycle count software.