How to Do a Stock Audit in Your Retail Store (2026)
A step-by-step guide to counting stock, reconciling against records and catching shrinkage — without shutting your shop.
A stock audit compares what is physically on your shelves against what your system says should be there. The gap is shrinkage — theft, wastage or errors — and finding it early protects your margin. Here is how to run one.
Prepare before you count
Freeze stock movement for the count window, organise shelves, and have your system’s stock list ready — ideally on a device you can update as you count.
Count and reconcile
Count section by section, record actuals, and compare against system quantities. Investigate every significant discrepancy — it is either a process gap or a loss.
Make it routine
- Cycle-count high-value or fast-moving items more often
- Full audits periodically (quarterly is common)
- Fix the process behind each discrepancy
- Use a system that logs every movement so gaps are obvious
Software makes it painless
When every sale, purchase and return already updates stock, an audit is a quick reconciliation, not a shutdown. MyGroce keeps live stock and audit-friendly records.
Frequently asked questions
How often should I do a stock audit?
Cycle-count fast or high-value items frequently and run a full audit periodically, such as quarterly. With live-stock software like MyGroce, reconciliation is quick and discrepancies stand out.
Keep reading
- Inventory software for small business
- How to reduce inventory loss in retail
- Supermarket & grocery billing for small business
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