What Is the Best Way to Count Inventory?

Wednesday 24, Jun 2020

share this article

What’s on your shelves? Although it can be tedious, counting inventory is a must. Without it, items can be overstocked, understocked, or out of stock without anyone noticing. Business profits, losses, and taxes will be recorded inaccurately and lead to costly mistakes. But what’s the best way to count inventory?

What Is the Best Way to Count Inventory?

The best way to count inventory is with inventory management software that helps keep inventory audits short and sweet. Using an inventory app is faster than physically counting items and maintaining spreadsheets, and it’s also more accurate. You’ll save even more time with inventory management software that uses barcodes and QR codes to automate and simplify the inventory counting process.

Ten Steps to Counting Your Inventory

The best way to count inventory for your business starts with planning, selecting software that matches your business needs, and setting up barcodes or QR codes. Of course, if you don’t use an inventory app, most of these steps still apply. They’ll just take longer.

1. Choose inventory management software – List all the things that you need inventory management software to do for your business. In addition to tracking quantity, you might need the software to:

Track items across multiple business locations
Categorize items
Format data in a way that’s easy to access and read
Create reports
Offer a mobile-friendly dashboard

2. (Maybe) purchase hardware – You may need to purchase a barcode/QR code scanner if the inventory software you choose does not allow you to use your mobile device or tablet to scan items. (Sortly, for example, requires no external hardware.)

3. Identify all locations for inventory – List each physical location where your inventory is stored.

4. Map each warehouse or storage area – Make a diagram or list of each storage area to avoid missing items as you label inventory.

5. Identify each unique item – List each item in your inventory.

6. Categorize items – Establish item categories so you can quickly sort and find them in inventory management software.

7. Describe items – Create a unique description for each item, list its physical location, and include essential details to store in the barcode or QR code, if you are using inventory automation.

8. Create barcodes or QR codes – Use the inventory control system to generate barcodes or QR codes, then print and test the codes before applying them on your inventory items.

9. Organize your team – Decide who will be assigned to label the items, train them on how to use the software, and schedule a date to automate your inventory counting process.

10. Apply barcodes or QR codes and scan as you go – As you apply barcodes or QR codes to items, you’ll scan them into the inventory management software. And it starts counting your inventory automatically.

Other Than Counting Inventory, How Will Automation Help?

Inventory management software is the best way to count inventory. But it’s also the best way to track and manage assets, equipment, materials, and products. You’ll have real-time access to relevant information about each product, including:

Reorder levels – Limit or prevent shortages and out-of-stock items.
Vendor details – Quickly access the name and location of a vendor and the item cost.
Important dates – View details about item expiration or warranty.
Product summary – Check a product summary to answer customer inquiries about hazmat warnings or product usage.