Inventory counts are systematic processes used by businesses to verify the quantity and condition of their stock. This involves physically counting items in a warehouse or store to ensure that the recorded amounts match the actual items on hand. Regular inventory counts help maintain accurate records and prevent discrepancies. There are different methods for conducting inventory counts, such as annual counts, cycle counts, and spot checks. Each method has its own advantages and is chosen based on the size of the business and the nature of the inventory. Accurate inventory counts are essential for effective inventory management and financial reporting.