Preparing your warehouse for an inventory observation

Inventory observation is where review timelines often slip. The warehouse is busy, tags are photocopied, and the perpetual system is still posting receipts from yesterday. A short preparation list saves a second visit.

Freeze and communicate

Agree a goods-receipt freeze window with operations. Post it on the dock door. Reviewers should not discover mid-count that a lorry is still unloading into a counted aisle.

Seal tags before doors open

Pre-numbered tags, controlled by finance, beat sticky notes. Unused tags are accounted for at the end of the day — a small discipline that prevents quiet additions after the count team leaves.

Slow-moving and consignment stock

Flag consignment and customer-owned goods before the count. Misclassified ownership is a common finding and a slow conversation with the parent auditor.

Provide the roll-forward bridge

After the count, give the reviewer a bridge from count quantities to the balance-sheet figure, including provisions. Waiting a week for that bridge is how observation notes become late review comments.