Have you ever ordered something online and then endured a delivery delay or a “sorry, sold‑out” email? Those hiccups often trace back to a poor stocktake. Research shows 21 % of consumers lose faith in a brand after a late delivery and 23 % refuse to buy again. A rock‑solid stocktake prevents those profit‑killing moments, and that’s why stocktake is important for every retailer, wholesaler and e‑commerce brand.
What is a stocktake?
A stocktake is when a business goes through and counts everything it has in stock, from products on the shelves to items in the warehouse. It’s done to make sure the numbers in the system match what’s actually there. This helps spot any missing, damaged, or extra items and keeps records accurate. Regular stocktakes also make it easier to plan orders, avoid running out of popular items, and keep the business running smoothly.
Stocktake Meaning: What Is Stocktake in Retail?
In retail and wholesale supply chains, a stocktake is the systematic physical count and verification of every SKU in a location. Accurate counts feed reliable financial statements, loss‑prevention programs and customer‑friendly fulfilment.
Quick fact – ATO rule: If the value of your trading stock changes by ≤ A$5 000 across a financial year, the ” Australian Taxation Office’s simplified stock rules let many small businesses skip a formal stocktake and save time.
Why is Stocktake Important For Every Business
- Accurate financial records – updated counts keep your balance‑sheet inventory from being over‑ or understated.
- Prevention of stock loss – regular checks highlight shrinkage (theft, damage, mis‑picks) early.
- Improved decision‑making – knowing the exact on‑hand level prevents over‑buying and dreaded stock‑outs.
- Regulatory compliance – the ATO and auditors require verifiable inventory records; fines hurt more than a day’s counting.
- Operational efficiency – reliable data lets your WMS route pickers, replenish slots and forecast demand without guesswork.
How Does Stocktake Work?
At its core, stocktake compares system quantity with physical quantity and reconciles any variance. Typically, it follows five steps:
- Freeze stock movements (or isolate the counted zone).
- Count each SKU (scan or tally).
- Record counts on a stocktake sheet or app.
- Investigate variances—mis‑picks, mis‑slots, theft.
- Update the ledger and reopen stock.
How to Do Stocktake: Step‑by‑Step Checklist
- Pick the right time – Choose a quiet day or time when there’s less activity. Let your team know in advance so everyone’s ready, and gather what you’ll need — pens, clipboards, scanners, or your inventory app.
- Get things in order – Tidy up shelves, group similar items together, and make sure everything is labelled. A bit of prep now will save a lot of time during counting.
- Pause stock movement – Put a temporary stop on sales, returns, or deliveries while you’re counting. This keeps the numbers from changing mid-stocktake.
- Count everything – Go through each item carefully and write down the quantities. Pay extra attention to items that sell fast or cost more, just to be sure.
- Check against your records – Compare what you’ve counted with what’s in your system. If there’s a difference, look into it — things might be misplaced, damaged, or missing.
- Wrap it up – Share the results with your team or manager, and note any changes needed for ordering, storage, or security.
Download “How to Do Stocktake” template.
Stocktaking Methods: Periodic vs Perpetual
| Method | Best for | Pros | Cons |
|---|---|---|---|
| Periodic stocktake (monthly / quarterly / annual) | Low‑SKU boutiques, cafés | Cheap; no tech needed | Must pause operations; data can go stale |
| Perpetual stocktake (real‑time) | High‑volume e‑commerce, 3PLs | Always accurate; minimal shutdowns | Needs scanners, integrated IMS and staff discipline |
For more depth on the perpetual approach, see Investopedia’s guide to the perpetual inventory system.
What Are the Benefits of Stocktake?
Doing a stocktake might feel like a big job, but the benefits it brings to your business make it worth the effort. It’s not just about counting boxes — it’s about keeping your business in control and running smoothly.
1. Keeps your records real
Systems can say one thing, but what’s on your shelves might tell a different story. A stocktake helps you match the two so you know exactly what’s in your warehouse or shop.
2. Smarter buying decisions
When you know what’s really in stock, you can avoid panic orders or buying more than you need. That means less waste and better use of your budget.
3. Spots problems early
Missing items? Damaged goods? Numbers that don’t add up? A stocktake shines a light on these issues before they grow into bigger, costlier problems.
4. Protects your cash
Every item on your shelves is money sitting there. By keeping the right amount of stock, you stop cash from being tied up in products that just gather dust.
5. Keeps customers happy
When stock records are accurate, you can deliver orders on time and avoid disappointing customers with “out of stock” messages.
6. Helps with reports and audits
If you need to provide figures for accounting or tax purposes, a stocktake gives you up-to-date, reliable data without the guesswork.
What are the Risks of performing of a stocktake
A stocktake is an important part of running a business, but it can bring its own set of challenges if you’re not prepared. Think of it as a necessary chore — valuable in the long run, but a little tricky in the moment.
1. It can slow things down
To count everything properly, you often need to hit pause on sales, deliveries, and returns. If this happens during a busy period, it can annoy customers or cause delays.
2. Mistakes happen
No matter how careful you are, people can miscount, skip items, or record numbers incorrectly — especially if the stock isn’t well organised.
3. It takes time and money
A stocktake can be a big job, sometimes needing extra staff or overtime hours. That means extra costs on top of the time it takes to get it done.
4. It’s hard work
In a big warehouse or store, you might be lifting, moving, and bending for hours. Without proper care, that can be exhausting or even cause injuries.
5. New errors can sneak in
If the final numbers aren’t entered into the system correctly, your records might end up more inaccurate than before you started.
6. Security risks
When products are being handled and moved around, there’s a small window where items can go missing if things aren’t closely supervised.
Stocktake Sales & Retail Events
In Australia, a stocktake sale is the clearance frenzy that follows End of Financial Year (EOFY) on 30 June—shoppers love the bargains, accountants love a fresh ledger. The ABC offers a handy explainer on why EOFY is peak discount season: EOFY 101.
When Do Stocktake Sales Start?
Most national chains open their stocktake sales in late May or early June, peaking in the first week of July.
Myer Stocktake Sale 2025 – Key Dates
| Event | Start | End | Channel |
|---|---|---|---|
| Preview offers | 26 May 2025 | 2 Jun 2025 | Online‑only |
| Main sale window | 3 Jun 2025 | 7 Jul 2025 | In‑store & online |
| Final markdowns | 5 – 7 Jul 2025 | 7 Jul 2025 | In‑store |
Wondering when does the Myer stocktake sale end in Australia? Bookmark the official Myer EOFY sale page for real‑time updates.
Retailers beyond Myer—think David Jones, JB Hi‑Fi, Bunnings—run similar stocktake sales, so fulfilment centres should prep for a June–July volume spike.
Difference Between Stocktaking and Inventory Management
- Stocktaking – a snapshot physical count at a specific time.
- Inventory management – an ongoing strategy that forecasts demand, automates re‑ordering, slots fast‑moving SKUs and analyses turnover. Stocktake feeds inventory management with fresh, trustworthy data.
How Often Should You Perform a Stocktake?
How often you should do a stocktake really depends on the type of business you run and how fast your stock moves. Many businesses choose to do a full stocktake once or twice a year, often at the end of the financial year for accurate reporting. Others, especially those with high turnover or valuable items, do them quarterly or even monthly. Some companies also run smaller, more frequent “cycle counts” on specific products to keep things accurate without shutting down operations for a full count. The key is to find a schedule that keeps your inventory records reliable while fitting in with your day-to-day business operations.
- Perpetual environments – cycle‑count high‑value SKUs daily and run a full physical audit annually.
- Mid‑size stores – quarterly counts plus monthly spot checks.
- Low‑turnover shops – an annual stocktake may suffice, but plan monthly shrinkage scans for safety.
Common Stocktaking Challenges & How to Improve
| Problem | Root cause | Fix |
|---|---|---|
| Mis‑counts & data errors | Manual tally sheets | Barcode or RFID scanning, double‑checker pairs |
| Shrinkage (theft, damage) | Poor security | CCTV, tamper‑evident seals, staff training |
| Trade disruption | Counting during peak hours | Schedule counts after close or during slow periods |
| Ledger mismatch | Delayed system updates | Integrate IMS with POS/WMS for real‑time sync |
Frequently Asked Questions
What does stocktake meaning boil down to?
A stocktake is a point‑in‑time physical inventory count that reconciles your books with what is actually on the shelf.
How does stocktake work in a café?
Freeze sales, scan each item, reconcile variances, then reopen POS—usually done after hours to avoid revenue loss.
Why is stocktake important beyond accounting?
It spotlights fast‑moving SKUs, sluggish stock and shrinkage, letting managers act before cash is lost.
Jewish stocktake—what does it refer to?
Outside retail, some Jewish communities use “stocktake” metaphorically for a spiritual self‑audit (cheshbon ha‑nefesh) before Yom Kippur.
How often should stocktake be done in e‑commerce?
Cycle‑count daily and run a quarterly full count if you ship 1 000+ orders per month.
Conclusion
A disciplined stocktake underpins profitable, customer‑friendly operations. By choosing the right method, using digital tools and taking cues from events like the Myer Stocktake Sale 2025, you’ll minimise shrinkage, keep auditors happy and delight shoppers with every on‑time delivery.
Next step: Download our free Stocktake Template and integrate it with iSend’s courier bookings to turn perfect counts into perfect deliveries.
