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A physical inventory count is a structured approach to counting every piece of a companys inventory Physical counts are used to ensure inventory records and financial statements are accurate. In fact, physical counts are often mandated by financial accounting rules and tax regulations to verify inventory is correctly valued on the balance sheet. Companies schedule a physical inventory count at the end of a reporting period --monthly, quarterly or yearly. They can be conducted either manually (using pen and paper) or electronically (using a mobile scanning device). Physical inventory counts are an essential part of keeping inventory records accurate and current. Up-to-date inventory records provide for better forecasts around sales and purchases, and ensures your business always has the right amount of product on hand to meet your customers demand
