According to Generally Accepted Accounting Principles (GAAP) and IRS rules, it’s expected that businesses that store items in a warehouse conduct an inventory count periodically. There are two main options used by companies today: the physical inventory process and cycle counting. There are benefits of inventory cycle counting and physical inventory counts, but one of these methods may be the better option for you. Here’s what you need to know about cycle count vs. physical inventory and how to decide which is best for you.
What Is a Cycle Counting Process?
A warehouse cycle counting process is an inventory auditing procedure that is a part of an inventory management solution. In this procedure, a small subset of inventory in a specific location is counted on a specific day. The cycle counting method is a popular solution for inventory management that enables businesses to count multiple items within the