Guides · Stock audit

Stock audit, as a practice

A stock audit procedure for a live godown: count without shutting down, count blind, chase variances to causes, and a cadence that keeps stock honest.

Two meanings — and which one this page serves

"Stock audit" has a statutory meaning: an auditor certifying stock and its valuation for a bank or the books.

If that is your errand, your chartered accountant is the right door.

This page serves the operational meaning — the practice of counting your own godown and making the count mean something — which is the version that decides whether your stock figures are facts or folklore.

The principles before the procedure

Four principles carry the whole practice.

Count blind

The counter never sees the book figure first. A man who knows the expected number finds it.

Count in motion

Section-by-section cycle counts on a rhythm beat the annual shutdown, which happens once a year and is dreaded.

Count locations

The unit of counting is the rack, not somebody’s recall of what should be there.

Treat variances as leads

A mismatch is the beginning of a question, never the end of one.

The stock audit procedure, step by step

Audit result
Gains +22Losses −49Net −27
Soft-close hinge 110°+18
Drawer channel 450mm-18
Cabinet handle 192mm+4
Tower bolt 6"-31
The first two are a pairing — A was billed, B was dispatched. Collapsed into one number it would read as zero.
Illustrative figures. Gains and losses are never collapsed, because the pairing is the thing worth seeing.
1

Pick one section

and log its movements — a live godown needs the log, not a lockdown
2

Two people count

one who keeps that stock and one who does not
3

Write it down first

before anyone opens the book figure
4

Recount once

half of all variances are counting errors
5

Close with a cause

not just an adjustment entry

The cadence that keeps it honest

Fast-moving and expensive stock earns frequent counts; the slow and cheap can wait longer.

The rhythm matters more than the ratio: a godown that knows a section is always counted eventually behaves differently from one that knows the annual day can be survived.

Publish the cadence, vary the order.

Counting without shutting down — the software version

Everything above works with a clipboard.

What the clipboard cannot give you is a godown that stays open while you count — movements logged against the count in real time, variances landing as records with owners, and the causes accumulating into a pattern you can read across quarters.

That is the module's design:

Count one section blind this week — then see the live version at a demo.

Ask for a demo