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4 Benefits of Cycle Counting

Cycle counting is an inventory auditing process that you perform continuously throughout the year. While it may seem tedious to be constantly counting your inventory, there are serious benefits of cycle counting, including less disruption to business operations, increased inventory accuracy, and even cost savings.

Let’s take a closer look at some of the benefits of cycle counting.

Cycle Counting Saves Time

Utilizing cycle counting prevents the major disruption that is the year-end inventory count. With cycle counting, you’ll no longer have to dedicate an entire business day, lose revenue, and have to pay employees overtime to count inventory. Spending shorter amounts of time each day, week, or month to evaluate inventory is not only less stressful, it’s also better for your bottom line.

Cycle Counting Saves Moneyinventory control, cycle counting

Variances in inventory numbers are normal, but year-end inventory counts can produce only one large variance – one that will require a large write-off. The smaller variances that eventually add up to the big variance will be caught as you cycle count, allowing you to make the appropriate adjustments to balance out your numbers and prevent a large year-end write-off.

Cycle Counting Improves Efficiency

Although a year-end inventory count takes so long and uses so many resources that completing one may feel like a huge accomplishment and a great way to end a year and start over with a clean slate, cycle counting is a better process, as it maximizes productivity, promotes organization, and increases accuracy and efficiency.

Cycle Counting Improves the Accuracy of Your Records

Shortening the amount of time between counts decreases the opportunities for errors; when mistakes do happen, cycle counting’s process of counting small quantities of inventory each day/week/month allows you to catch those mistakes quickly and allows you to adjust accordingly.

How does your business manage inventory? What challenges do you face? The experts at Southeast Computer Solutions would love to chat with you to create a solution that best fits your business processes! For more information on implementing best practices to improve your inventory management processes, contact us today.

Cycle Count eBook

About Southeast Computer Solutions

Southeast Computer Solutions is based in Miami, Florida, and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care. Learn more by visiting our website or calling 305-556-4697.


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