Industry guide
Year end inventory counts: a practical guide for retailers and wholesalers
Quick answer
Plan the inventory count in advance, stop or document goods movement, count in pairs with numbered sheets, identify damaged or obsolete stock and reconcile the final count to the books and cut off documents.
Key takeaways
- Plan the count before the last week of the year.
- Document shipping and receiving cut off.
- Reconcile count results to the books quickly.
Plan for a controlled count
Assign teams, prepare count sheets and decide how goods movement will be paused or recorded during the count.
Pay attention to cut off
Record the last receiving and shipping documents so inventory and cost of sales are recorded in the appropriate period.
Follow through after count day
Investigate differences, identify obsolete items and reconcile the final inventory value to the accounting records.
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Reviewed by Gurjinder Dhillon, CPA, CGA, MBA. Check current primary guidance before acting on filing dates or tax questions: Canada Revenue Agency (opens in new tab) and WCB Alberta (opens in new tab).
Last updated December 21, 2026