Common stock taking mistakes and how to avoid them with COSYS

Inventory management plays a crucial role in business accounting, ensuring an accurate record of assets and liabilities. It provides transparency regarding actual stock levels and serves as the foundation for proper bookkeeping.

What is a stock take?

An inventory count involves capturing, evaluating, and documenting all tangible and intangible assets within a company. In warehouse management, it is particularly important for reconciling actual stock levels of goods, raw materials, or equipment with captured values.

Types of stock takes:

• Annual stock take: A one-time stock taking on a specified date.
• Perpetual stock take: Ongoing stock monitoring throughout the fiscal year.
• Sampling stock take: A statistical method that estimates stock levels instead of a full physical count.

Why is a stock take legally required?

In many countries, including Germany, stock takes are legally mandated for companies subject to financial reporting, as stated in § 240 HGB. This ensures that financial records accurately reflect the company’s assets and liabilities, enabling correct profit determination. Additionally, regular stock takes help identify shrinkage, theft, and accounting errors, allowing businesses to take corrective actions.

Beyond compliance, a precise stock taking process enhances warehouse management, streamlines procurement, and improves overall operational efficiency. A well-executed stock take is not just a legal obligation—it is a key driver of business success.

Common stock take mistakes and how to avoid them

While stock takes are essential for ensuring accurate stock records, mistakes can occur despite careful planning. These common errors can lead to discrepancies and financial losses—but they can be minimized with the right approach:

1. Data Entry Errors

Mistakes such as incorrect entries, transposed numbers, or duplicate records can distort inventory levels. Manual counting is particularly prone to such errors.

2. Misplaced articles

Products stored in incorrect locations or disorganized shelves can result in missing stock or duplicate entries, leading to inaccurate reports.

3. Technical issues

Malfunctioning barcode scanners, software bugs, or integration failures between systems can result in incorrect or unsynchronized data.

4. Human errors due to time pressure and lack of training

Inventory counts conducted under tight deadlines often lead to rushed data collection, increasing the risk of mistakes. Additionally, untrained staff may struggle with inventory procedures, further compromising accuracy.

5. Outdated or manual processes

Using pen-and-paper methods introduces errors due to misreading handwriting, misplaced notes, or number mix-ups. A lack of digital tools significantly increases the risk of inaccuracies.

How COSYS stock taking software enhances accuracy and efficiency

COSYS offers a tailored solution designed to minimize errors and streamline the stock taking process. The system consists of a mobile app for data collection and a backend platform for stock take management.

Key features of COSYS stock taking software:

✔ Barcode scanning for quick and precise stock counts

• Scan product barcodes and warehouse locations with a mobile device.
• Manually adjust quantities if needed or use the unit-based counting method for automatic quantity reconciliation.

✔ Error reduction and duplicate entry prevention

• Scanned items are stored in a digital list, allowing easy correction of miscounts or duplicate entries before finalizing stock records.

✔ Seamless integration with ERP-Systems

• Compatible with most mobile computers.
• Easily integrates with any ERP system to synchronize inventory data.

✔ Offline functionality for uninterrupted operations

• Data is securely stored on the device even without an internet connection.
• Once a connection is restored, all data is automatically transferred to the backend.

✔ Comprehensive reporting and export features

• Generate detailed stock take reports in various formats for further processing.

✔ User-Friendly interface for quick onboarding

• Designed for intuitive use, reducing training time and personnel costs.

Conclusion: Upgrade your stock take process with COSYS! Ensure error-free, efficient, and legally compliant stock take with COSYS’ advanced digital solution. Book a consultation today and experience the benefits of streamlined inventory management firsthand!