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Audit reports
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When to do Stock audit?

When to do stock audit?

Financial Year-End

     
  1. For accounting and compliance purposes.
    2.  
  2. Mandatory for companies needing accurate financial statements.
    3.   

‍Before Peak Seasons or Festivals

     
  1. To ensure stock accuracy before high demand periods (e.g. Diwali, Black Friday, Christmas).
    2.   

During Business Closure or Relocation

     
  1. Essential to validate stock before shutting down or moving operations.
    2.   

When There Are Frequent Discrepancies

     
  1. If you notice frequent stock-outs, overstocking, or unexplained losses.
    2.   

‍Before Major Purchases or Reordering

     
  1. Helps avoid unnecessary orders or missing critical items.
  2. Ensures the new system’s data matches the physical stock.
    3.   

After Implementing a New Inventory System

  1. Ensures the new system’s data matches the physical stock.

How Frequently Should Stock Audit Be Done?

How Frequently Should Stock Audit Be Done?

Best Practice: Cycle Counting

Instead of auditing everything at once, you can do cycle counts — counting different stock categories on a rotating basis (daily, weekly, monthly). This minimizes disruption and keeps inventory accurate throughout the year.