Is the annual inventory a challenge? Our step-by-step checklist will help you prepare the POS system, organize data, and conduct the inventory smoothly and accurately. Turn chaos into control and regain valuable time.
This is the moment when data from the POS system collides with the physical reality of your warehouse. Properly preparing information in the software is the key to an efficient, accurate, and stress-free inventory that will give you a real picture of your store’s financial condition.
Inventory is much more than just counting goods on the shelves. It is a verification process that directly affects profitability, purchasing decisions, and compliance with regulations. Neglecting the data preparation stage in the sales system leads to costly mistakes that can be easily avoided. Spending time on tidying up “before” pays off multiple times during the counting process and after its completion.
The primary goal of inventory is to determine the actual state of possession. If your product database in the POS system is contaminated – containing duplicate products, items with incorrect EAN codes, or incorrect names – the inventory result will be unreliable. Imagine a situation where the same cottage cheese is listed in the system under two different names. During counting, the team will count it as one product, but the system will treat it as an excess of one and a shortage of the other, generating false inventory discrepancies. A clean database is the foundation without which the entire structure will collapse, and you will waste hours investigating the causes of discrepancies that never existed.
Every minute spent explaining discrepancies during inventory is a real cost. It is the working time of you and your employees, often within costly overtime. A well-prepared process, supported by clean data in the POS, can reduce the time needed for physical counting by up to half. Instead of chaotically running around the store with a scanner and a piece of paper, the team can methodically scan successive zones, and the system automatically counts the states. This means fewer mistakes, less stress, and concrete savings in the payroll budget. In one store in Luton, thanks to prior organization of the database and the use of data collectors, the inventory process was shortened from two full nights to just six hours.
The result of the inventory is not only information for you. It is an official document that forms the basis for accounting and tax settlements. A reliable inventory report, based on precise data from the POS system, is your shield in case of an HMRC audit. It shows that you manage your inventory professionally and keep records according to standards. Unreliable data leads to errors in valuing inventory, which in turn can result in incorrect tax calculations and serious financial consequences. Investing in data organization is an investment in peace of mind and legal security for your business.
To ensure a smooth process, you need to approach it methodically. The following step-by-step guide will take you through the key preparation stages that need to be completed in your POS system before starting the physical counting of goods.
Your product database is the heart of the POS system. It must be in perfect order. This is an absolute foundation that cannot be overlooked.
1. Search for and merge duplicates: Use tools in the POS system to identify goods that have been entered multiple times under different names or codes. Merge them into one correct record.
2. Verify EAN codes: Randomly scan selected products from different categories and ensure that the assigned barcodes in the system are correct.
3. Standardize naming: Check whether product names are consistent and understandable. Avoid abbreviations and colloquial terms that may be misleading (e.g., “Sok Tymb. Pom.” instead of “Tymbark Sok 1l Pomarańcza”).
4. Check category assignments: Ensure that each product is assigned to the correct category (e.g., Dairy, Beverages, Sweets). This will facilitate later analysis of the results.
5. Verify VAT rates: An incorrect VAT rate is a straightforward path to problems with settlements. Review key product groups and ensure that rates are up to date.
Before starting the counting, the inventory in the system must be “frozen”. This means that all operations changing the quantity of goods must be completed and approved.
1. Approve all PZ documents (External Receipt): All deliveries that have physically arrived at the store must be entered into the system and approved. There should be no situation where goods are in the back but are formally “non-existent” in the POS.
2. Finalize returns to suppliers: Any goods prepared for return should be documented and removed from inventory before the inventory.
3. Complete inter-warehouse transfers (MM): If you have more than one store or warehouse, ensure that all transfers of goods have been completed and confirmed in the system on both sides.
4. Block the ability to create new documents: Many POS systems allow temporary blocking of the warehouse module during inventory. This guarantees that no one accidentally enters a delivery during counting.
Even the best data will be useless if the technology fails. Functional equipment is the basis for quick and accurate counting.
1. Charge batteries: Ensure that all barcode scanners, data collectors, and tablets are fully charged. Prepare spare batteries or power banks.
2. Test devices: Check that scanners correctly read codes and communicate with the POS system. Conduct a test on several products to ensure that data is transmitted without delays.
3. Check network connectivity: If you are using devices operating on Wi-Fi, verify the signal strength throughout the store, especially in remote corners of the warehouse.
4. Update software: Check if the latest stable version of the POS software is installed on computers and mobile devices. Do this a few days before the inventory, not at the last minute.
Your employees are a key element of the process. They must know exactly what, how, and when to do.
1. Conduct a brief training: Explain the purpose of the inventory and present the action plan. Show how to properly operate data collectors and what to do in case of problems (e.g., goods without a barcode).
2. Divide the store into zones: Designate specific areas (e.g., shelf 1, fridge 3, warehouse-sector A) and assign specific people or teams to them. This prevents double counting or missing any area.
3. Establish rules: Determine how to handle goods in bulk packaging (whether to count pieces or cartons) and what to do with damaged products. Consistent rules are key to consistent results. A store in Manchester that faced discrepancies discovered that one team counted packs of water as one piece, while another counted them as six bottles. Once procedures were standardized, the problem disappeared.
This is the last but absolutely most important step before starting. Before you begin any inventory operations in the system, make a full backup of the entire database. This is your safety net in case of equipment failure, human error, or software issues. A backup gives you the assurance that in case of problems, you can quickly restore the system to its pre-inventory state.
Remember that a successful inventory starts long before the first scanned product. To ensure peace of mind and reliable results, focus on the following points:
Don’t put off preparations until the last minute. Start reviewing and cleaning your product database today. Treat it as an investment that will bring you tangible benefits in terms of saved time, reduced stress, and full control over your business before the busy annual summary period arrives.
