What is stock take? Put simply, a stock take is a physical count of every item your business holds at a set point in time, checked against what your records say you should have. If you’ve ever seen a “Closed for stock take” sign on a shop door, that’s what’s happening behind it: the team is counting everything on the shelves and in the storeroom.
This guide covers the stock take meaning, the three main types of count, a step-by-step stock take procedure and the mistakes that most often throw a count out. You can also download our free stock take sheet in Excel. If you’d rather hand the whole job over, our professional stock take services cover retail stores and warehouses across South Africa.
It’s printable and has the variance formulas built in.
Stock take meaning: what is stock take, exactly?
A stock take (also written stocktake, and often called stocktaking or a physical inventory count) is the process of physically counting all the stock a business holds and comparing the counted quantities with the quantities in its POS, accounting or inventory system. The differences, called variances, are then investigated and corrected.
The term comes from British English, which is why it’s used in South Africa, while Americans tend to say “physical inventory”. In everyday speech, to “take stock” means to stop and honestly review where you stand. A stock take does exactly that for your business: it replaces the number you think you have with the number you actually have.
Why it matters: your system only records what people tell it. Unchecked deliveries, cases captured as single units, unrecorded damages and theft all build up over time, and the count is how you find them. It also gives you the closing stock figure for your financial statements, which your accountant and SARS rely on at year-end. For the bigger picture on stock control and valuation, see our inventory and inventory management guide.
Types of stock take: full, cycle and spot counts
There are three common types of count:
| Type | What you count | How often | Best for |
|---|---|---|---|
| Full stock take | Everything, in every location, at one point in time | At least once a year, usually at financial year-end, plus handovers and system changes | Financial statements, audits, handovers |
| Cycle count | One section, category or group of products on a rotating schedule | Weekly or monthly, so the whole range is covered over time | Keeping records accurate between full counts, without closing |
| Spot check | A handful of items picked for a reason | Any time | High-value lines, best sellers and anything that “looks wrong” |
Most businesses need all three: the full stock take sets the baseline, and cycle counts and spot checks keep it accurate. If you run a small shop, our small business inventory management guide includes a simple weekly counting routine.
The stock take procedure, step by step
Whether you call it a stock take procedure or a stocktaking procedure, the steps for a full count are the same.
1. Plan the date, scope and team
Pick the quietest time, such as after hours, a weekend or a public holiday. Decide what’s in scope: which sites and storage areas, and how you’ll treat consignment stock, stock held for customers and goods in transit. Put counters in pairs and appoint one supervisor.
2. Set a cut-off and freeze movement
Process every delivery, return, transfer and invoice up to the cut-off. While an area is being counted, nothing is received, dispatched or sold from it. If you must keep trading, record every movement.
3. Prepare the site
Put like products together, close open boxes, label shelves and bins, and check that barcodes scan. Move damaged, expired and non-stock items to a marked area so they’re counted separately or not at all.
4. Map every location
List every bin, shelf, aisle and storage area, including the back room, display windows, the till counter and the bakkie. Give each one a code and its own stock take sheet, so you can see which areas have been counted.
5. Count blind, then count again
Counters shouldn’t see the system quantity, or they’ll tend to “find” the number they expect. Count each bin twice, ideally by a different person, and always record the unit of measure.
6. Recount the differences
Where Count 1 and Count 2 don’t match, recount that bin before moving on, while the stock is still frozen.
7. Compare with the system and investigate
Once both counts agree, compare them with the system quantity. Investigate large differences before you adjust anything: check recent deliveries, returns, transfers, voids and stock in the wrong place.
8. Approve, adjust and file
The supervisor signs off the sheets, and every adjustment is posted with a reason. Keep the signed sheets or exports with your financial records. SARS generally requires records that support a tax return to be kept for five years (SARS: Record keeping).
Quick stock take checklist: scope agreed, cut-off set, paperwork processed, site tidy, every location mapped, sheets printed, counters briefed, double counts done, differences recounted, adjustments approved, records filed.
How to use the free stock take sheet
Download the StockCounts stock take sheet. It’s a free stock take template in Excel that prints on A4 landscape, so you can use it as a paper stock take form or type counts straight in. Fill in the header (site, area, date, counter and checker), then the columns:
| Column | What goes in it |
|---|---|
| Bin/Location | The bin, shelf or area code from your location map |
| SKU | Your item code or barcode number |
| Description | The product name, as in your system |
| Unit of measure | Each, pack of 6, case of 24, kg, metre and so on |
| Count 1 | The first count |
| Count 2 | The second count, ideally by a different person |
| Variance | Calculated for you: Count 2 minus Count 1. Anything other than 0 means recount |
| System qty | The quantity your system expects |
| Difference | Calculated for you: the agreed count minus the system quantity. Shows “Recount” until Count 1 and Count 2 agree |
| Counter initials | Who counted |
| Notes | Damaged, expired, unlabelled, wrong location and so on |
A few tips for using the sheet:
- Keep it blind. Fill in the System qty column only after counting, or hide that column before you print the counters’ copies.
- Pre-fill what you can. Paste in SKUs, descriptions and locations exported from your system.
- Check the summary. The top of the sheet shows how many lines still need a recount and how many differ from the system. The Instructions tab repeats these steps for your team.
Common stock take mistakes
- Counting while trading or receiving. Moving stock never reconciles.
- Mixing units of measure. A case of 24 captured as 1 unit (or the reverse) is one of the most common sources of large variances.
- Letting counters see the system quantity. Blind counts are more honest counts.
- Counting only once. A single count gives you nothing to check against.
- Forgetting hidden locations. Back rooms, top shelves and returns areas are easy to miss.
- Adjusting to “make it match”. If you correct every difference without investigating, you’ll never find the cause.
- Re-typing paper sheets in a rush. Typing errors undo careful counting.
When to bring in professional stocktakers
A stock take sheet and a well-briefed team work well for a small store. Bring in professionals for your year-end count, large stores and warehouses, multi-branch counts, a handover, or when you suspect losses and need an independent figure. December and February year-end dates fill up quickly, so it pays to book early.
Here’s how our stock take service works:
- Every bin is counted twice by different teams, and our software flags any bin that needs a recount.
- Live variance reports at any stage of the count when you give us your expected quantities.
- A site visit and take-on form. We prefer to visit your site before we quote, and we send a take-on form before the count to agree the count rules, such as cases vs units, consignment stock and unlabelled items.
- Nationwide service from our base in Centurion. For counts outside Gauteng, travel and accommodation are calculated in your quote.
- After-hours, weekend and public-holiday counts, charged at different rates, so you don’t have to close during trading hours. There’s no minimum job size.
- Clean CSV exports that import into almost any inventory management system.
Prefer to count with your own staff? We also rent out scanners preloaded with our counting software, and capture product master files and count data. See our inventory management services.
Frequently asked questions
What is the meaning of stock take?
A stock take is a physical count of all the stock a business holds at a specific point in time. The counted quantities are compared with the business’s records, and any differences (variances) are investigated and corrected. It’s also written stocktake or called stocktaking.
What is the difference between a stock take and a cycle count?
A full stock take counts everything at once, usually at financial year-end. A cycle count covers one section or group of products at a time on a rotating schedule, so the whole range is counted over time without closing.
What should a stock take sheet include?
At minimum: the bin or location, SKU, description, unit of measure, counted quantity, system quantity and difference, plus the counter’s initials and notes. A good sheet also has space for a second count.
Is there a free stock take template in Excel?
Yes. Download the free StockCounts stock take sheet from this page. It’s a printable Excel template with columns for two counts and the system quantity, and formulas that work out the variance and difference.
How often should a business do a stock take?
Do a full stock take at least once a year, usually at financial year-end. Between full counts, cycle count high-value and fast-moving items regularly. If your variances are large, count more often until you’ve found and fixed the cause.
Book your stock take with StockCounts
Tell us about your site, your type of stock and your preferred dates, and we’ll recommend the right option and send you a quote.
Book a professional stock take or request a quote on our contact page.
- Corné Vermaak (Director): 082 922 7173 / [email protected]
- Edward van der Merwe: 072 643 6425 / [email protected]
- Address: Falcon Crest Office Park, 142 South Street, Die Hoewes, Centurion, 0157
- Office hours: Monday to Friday, 08:00–17:00. We also count on weekends and public holidays (at different rates).
StockCounts is a division of Leka Rona Trading.