Year-end inventory without stopping operations

Editorial poster titled “Year-end inventory without stopping operations” with Avila Ops blue, red, and yellow shapes.

Photo: Avila Ops Tecnologia

Taking inventory without stopping operations means counting in sections: divide stock into groups, count one group per day outside peak hours, and freeze movement of that group only during the count. In five days between Christmas and New Year’s, you can count everything without closing the store or working through the night. The difference from a traditional inventory count is that you never stop everything at once.

Between December 26 and 31, traffic drops after Christmas, the team is in the store, and the count supplies the number for year-end closing and January purchasing. Counting in February means counting after you have already bought the wrong quantities.

How do you divide stock into groups that fit into one day?

Use two criteria, in this order: value and turnover. Products tying up the most money and selling the most form group 1 and are counted first, because mistakes cost the most there. Low-turnover, low-value items come last and can even wait until January.

Day Group Criterion When to count
December 26 The 20% of products representing most of the value High value Before opening or after closing
December 27 (Sunday) Christmas bestsellers High turnover While the store is closed, or after closing if it opens
December 28 Reserve stock and storeroom Away from the counter During regular hours, without disruption
December 29 Regular medium-turnover line Remaining stock A quiet afternoon period
December 30 Low turnover, clearance, display items Leftovers Any time
December 31 Recount discrepancies Verification Morning

The weekdays in the table refer to 2026; adjust to the calendar in other years.

Each group must fit into two hours with two people. If it does not, divide it again. Long counts produce fatigue-related mistakes, and then you update the system with an incorrect number.

To freeze only that day’s group: nothing enters or leaves it during counting. If a customer buys an item from that group, the salesperson notes it on a separate sheet and includes it in the calculation at the end. The rest of the store operates normally.

How do you count reliably?

Before using any tools:

  1. The person counting does not look at the system first. A “blind” count prevents counting until the result matches the recorded number. Compare afterward.
  2. Use two people, one counting and one recording. If only one person is available, count twice with a break between counts.
  3. Record by code, not name. “White T-shirt M” exists at three suppliers; the barcode is unique. A phone barcode scanner costs little and eliminates most recording mistakes.

After counting, compare with your records and mark each item’s discrepancy in units and reais. Recount any item above 3% on December 31. Recurring discrepancies in the same product type point to the cause: small items not deducted at checkout, unrecorded exchanges, unlogged breakage, or a supplier sending 48 and invoicing 50.

For the basics of why discrepancies matter, see what inventory is and why you should count stock.

What should you do with the result before buying for next year?

The result drives three decisions:

Update the system with the actual number, item by item, as of the count date. Without this, counting was just an exercise.

Divide Christmas leftovers into two piles: what will sell in January at a discount and what you will carry until next Christmas. The second pile is money tied up for 11 months; if you can sell it at zero margin in January, that is better.

Cross-check against product margins. An item with heavy stock and little margin is the first candidate for discontinuation, as discussed in a product that sells a lot but earns little profit.

If discrepancies are high across almost everything, stock is not the problem; recordkeeping is: manual deductions, a spreadsheet nobody updates, a notebook at the counter. Correcting the count without correcting the records means counting again in March with the same discrepancy.

What to do now

Set up the five groups today, listing the products and counting day for each. Buy or install a phone barcode scanner. Assign two people per day from December 26 to 31. If recordkeeping is failing, moving off spreadsheets without losing history is the project that makes the next count match: avilaops.com/sistema-para-pequenas-empresas or contact us on WhatsApp: wa.me/5517997811471.

Frequently asked questions

Are cycle counts and full inventory counts the same?

No. A full count covers everything at once with the store stopped. Cycle counting covers sections while the store stays open. This plan is a cycle count concentrated into one week.

Do I need a count for my accountant, or just for myself?

If your business sells goods and is not a MEI, generally yes: December 31 inventory is part of the year’s accounting and tax closing. Confirm which number and format your accountant needs. You need it for management either way.

What should I do with expired, broken, or unsellable products?

Separate them, count them separately, and write them off as losses, recording the cause. This removes nonexistent value from inventory and shows how much the business lost to breakage that year, a number nobody looks at until counting.

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