An annual end of fiscal year stock-taking is typically undertaken for use in a company's financial statements. It is often done in the presence of the external auditors who are auditing the financial statements. Periodic counting is usually undertaken for regular, inexpensive items.

When should stock taking be done?

As mentioned earlier, a stocktake is generally performed once a month, at the end of the month. The purpose of a stocktake is providing accurate accounting data and identifying any discrepancies between the stock in the warehouse and the stock reflected in the accounting records.

Why stock taking is done at the end of financial year?

If your business produces or purchases stock you'll likely need to do at least one stocktake at the end of the financial year for tax purposes. A well-planned stocktake should result in minimal disruption and deliver accurate data for the maintenance of your inventory records.