How Often Should You Conduct Inventory: Once a Year or Cyclically?

Business owners often face a dilemma: is one big end-of-year inventory enough, or should regular (cyclical) counts be implemented? In Uzbekistan, where warehouses operate at varying levels of automation — from Excel to 1C and WMS — the method chosen directly affects accuracy, process speed, and tax risk.

Approach #1: Annual Inventory This is the classic model, established in the Uzbekistan Tax Code.
Pros:

Legal compliance.
Convenient for accounting (year-end closure).
Simple to organize.

Cons:

Large warehouse downtime (1–3 days).
Staff stress.
Large discrepancies that are difficult to resolve immediately.
Theft and errors can accumulate throughout the year.

📌 Example: An electronics distributor warehouse in Tashkent revealed a shortage of ~15 million UZS (~6% of warehouse turnover) during the annual inventory. Most losses were in high-value small electronics (Category A), with receiving errors accumulated from the previous quarter.

Approach #2: Cyclical Inventory This is the practice of regular partial counts using the ABC/XYZ method.
Pros:

Minimal downtime — warehouse continues operating.
Early detection of errors.
Less stress for the team.
Continuous control and discipline.

Cons:

Requires an accounting system (1C, WMS) and clear addressing.
Culture of discipline and process control is necessary.

📌 Example: A wholesale company in Andijan implemented the cyclical approach. Group A is counted weekly, B — monthly, C — quarterly. Annual shortage decreased from 5% to 2%, and Category A items were fully corrected through weekly monitoring.

Comparison of Two Approaches Optimal choice for business in Uzbekistan
Minimum: once a year — legally required.
Optimal: combination. Full annual + cyclical during the year.

ABC/XYZ approach:

A — every week.
B — once a month.
C — quarterly.

💡 Why recommend a combination?
Annual inventory — the legal “shield” of your business. Cyclical — daily “quality control” that prevents problems from accumulating. Together they protect margin and ensure compliance.

FAQ Can I rely only on cyclical?
No. Law requires a final annual inventory. Cyclical reduces risks and simplifies the annual count.

Is cyclical suitable for a small warehouse?
Yes. Even a 500 SKU warehouse can count top-20 items monthly.

What is needed to implement cyclical?
Addressing system (at least in Excel) and discipline. You can start with paper sheets counting top-20 items, gradually increasing automation.

📥 ABC/XYZ Inventory Calendar for the Year

Conclusion Annual — mandatory. Cyclical — a tool for control and growth. Together they give businesses in Uzbekistan maximum benefit: accurate accounting, fewer losses, and readiness for scaling.

Inventory.uz helps companies implement both one-time and cyclical counts — turnkey, with staff training and process automation. Figures are indicative; actual results depend on warehouse specifics.

How Often Should You Conduct Inventory: Once a Year or Cyclically?

Approach #1: Annual Inventory This is the classic model, established in the Uzbekistan Tax Code.
Pros:

Legal compliance.
Convenient for accounting (year-end closure).
Simple to organize.

Cons:

Large warehouse downtime (1–3 days).
Staff stress.
Large discrepancies that are difficult to resolve immediately.
Theft and errors can accumulate throughout the year.

Approach #2: Cyclical Inventory This is the practice of regular partial counts using the ABC/XYZ method.
Pros:

Minimal downtime — warehouse continues operating.
Early detection of errors.
Less stress for the team.
Continuous control and discipline.

Cons:

Requires an accounting system (1C, WMS) and clear addressing.
Culture of discipline and process control is necessary.

Comparison of Two Approaches Optimal choice for business in Uzbekistan
Minimum: once a year — legally required.
Optimal: combination. Full annual + cyclical during the year.

ABC/XYZ approach:

A — every week.
B — once a month.
C — quarterly.

FAQ Can I rely only on cyclical?
No. Law requires a final annual inventory. Cyclical reduces risks and simplifies the annual count.

Is cyclical suitable for a small warehouse?
Yes. Even a 500 SKU warehouse can count top-20 items monthly.

What is needed to implement cyclical?
Addressing system (at least in Excel) and discipline. You can start with paper sheets counting top-20 items, gradually increasing automation.

📥 ABC/XYZ Inventory Calendar for the Year

Conclusion Annual — mandatory. Cyclical — a tool for control and growth. Together they give businesses in Uzbekistan maximum benefit: accurate accounting, fewer losses, and readiness for scaling.

Inventory.uz helps companies implement both one-time and cyclical counts — turnkey, with staff training and process automation. Figures are indicative; actual results depend on warehouse specifics.