A stocktake (also called a physical inventory count) is the act of counting what you actually have on the shelf and comparing it to what the system says you should have. It is the periodic reality check that keeps your recorded inventory from drifting away from the truth.
Drift is inevitable: breakage, samples, miscounts, and small thefts all leave the books slightly ahead of reality. A stocktake surfaces those differences, and each variance is reconciled by posting an adjustment so the recorded quantity finally matches the count. The result is inventory valuation and reorder decisions you can trust.
How often you count depends on the business — high-value or fast-moving items justify more frequent counts than slow, low-value supplies. Many sellers do a full count at year end (the figure feeds COGS) plus spot-checks of their busiest items during the year.
Related terms
Adjustment
A transaction that corrects inventory quantities without a purchase or sale. Used for damaged goods, waste, samples, or other non-sale removals from stock.
Inventory Valuation
The total monetary value of all inventory currently in stock, calculated based on purchase costs. A key report for understanding the assets held in your business.
Location
A physical place where inventory is stored or business is conducted, such as a home kitchen, workshop, storage unit, or market stall. Inventory is tracked per location.