Best Physical Inventory Counting Software

Physical inventory counting software utilization can be seen in any retail location. Many stores even elect to do physical inventory multiple times throughout the year or count select departments or items on a regular basis. Whatever your timing may be, here are a few best practices to follow to help ensure success.

Although most stores invest in POS inventory control software with physical inventory features and hardware scanning devices, the process still requires people to perform the counting of the on-hand items. People perform their best when they understand why the task they are to perform is important. Be sure to explain to everyone who will be participating in physical inventory why having an accurate on-hand count of each item is necessary. It may also be most productive to divide the counting by departments and assign individuals to specific departments to count. This enables the counting of multiple departments in parallel and should help move the entire process along faster. Be sure to schedule the event well in advance so everyone is available for the task.

Inventory represents a current asset the store expects to sell within one year, however, the reasons for doing physical inventory don’t limit to just tax or accounting purposes. An accurate on-hand count ensures that buying decisions are from accurate data. Wrong on-hand quantities lead to misinformation in buying decisions, which negatively impacts your retail business. Order recommendations or buying reports can only be accurate if on-hand quantities are correct and avoid costly buying mistakes. The goal of any retail operation is to strike an optimum balance of inventory to prevent a losing excess dollars, and to not lose sales due to out-of-stock merchandise. Getting this balancing act correct certainly begins with an accurate count.

Retailers not only need to effectively manage their inventory but also purchase inventory that will result in the greatest profitability for the store. The recommendation of practicing performing counts of high-volume and high-value items on a regular basis is regularly put in place. High-volume items are particularly vulnerable to error due to the high number of transactions. It’s much easier to identify an inaccuracy in inventory if the discrepancy occurs within 30 or 60 days, rather than combing through months of data to reconcile an item that has seen a year since its last count.

One final best practice is to run an inventory report before and after conducting an inventory to get an accurate idea of the value of the inventory expectations vs. reality.

For more information about using Inventory control software with a physical inventory solution, call us at 866-889-3093 or contact us at [email protected].  ARBA Retail Systems is a leading provider of Cashless POS and Inventory Management solutions. HQ in Lisle, IL.