RSMUS.comIf you’ve just wrapped up another exhausting year-end physical inventory, you’re probably thinking, “There has to be a better way.” The operational disruptions, miscounts, employee burnout, and last-minute reconciliations can make anyone dread this process year after year. The good news? There is a better way: cycle counting and real-time inventory tracking.
Why year-end inventory is so painful
- Shutting Down Operations: Full physical counts often require closing or slowing down business, cutting into sales and productivity.
- Human Error: Manual counts are prone to miscounts, misplaced items, and duplicate entries.
- Employee Burnout: Long hours, overtime, and tedious counting drain morale and increase the likelihood of mistakes.
- Unexpected Discrepancies: Theft, damages, and unrecorded transactions lead to inventory mismatches, creating financial headaches.
- Logistical Chaos: Coordinating large-scale counts across multiple locations is complicated and time-consuming.
- Financial and Compliance Risks: Inaccurate counts can affect tax filings, audits, and financial reporting.
How cycle counting and real-time transactions help
Instead of conducting one massive count at year-end, cycle counting spreads inventory checks throughout the year, reducing stress and improving accuracy. Real-time transaction tracking ensures every stock movement is recorded immediately, eliminating the need for last-minute corrections. Together, these strategies:
- Reduce operational disruptions by breaking counts into smaller, manageable tasks.
- Catch errors early so discrepancies don’t pile up over time.
- Improve accuracy with constant inventory updates instead of relying on a one-time manual count.
- Ease employee workload by eliminating high-pressure, all-hands-on-deck inventory counts.
- Ensure compliance and financial accuracy with up-to-date records that align with reporting requirements.
Setting up cycle counting in NetSuite is easier than you think
NetSuite simplifies cycle counting by automating schedules and prioritizing high-value items. You can set count intervals based on ABC classification codes and efficiently update next cycle count dates using CSV files.
Here’s how to set up cycle counting in NetSuite:
Enable Cycle Counting: Setup > Company > Enable Features > Items & Inventory > Inventory Count
- Create Cycle Count Classes: Set count frequencies based on item importance.
- Assign Items to Cycle Counts: Apply cycle count classes to inventory items.
- Schedule Counts Automatically: Generate cycle count schedules based on classification.
- Bulk Update ABC Classifications and Next Count Dates via CSV: Adjust settings in bulk for efficiency.
- Perform and Record Counts: Use NetSuite’s inventory tools or barcode scanning for faster entries. To further automate the cycle counting process in NetSuite, Oracle released the Smart Count feature.
Make next year’s inventory a breeze
You don’t have to endure another year-end nightmare. By prioritizing cycle counting and real-time tracking, you’ll maintain accurate inventory year-round, reduce stress, and streamline financial reporting.
Now is the time to make the change—so next year, you won’t dread the year-end physical inventory. If you have any questions or need assistance getting started, please fill out the contact form below to get in touch with our team!
Sean Callahan
Experienced executive leader with expertise in Accounting, Operations, Sales, and NetSuite implementation. Proven track record in strategic planning, team leadership, and fostering organizational growth. Dedicated ally actively advocating for underrepresented colleagues through companywide initiatives.
