Inventory Periodic Method is an accounting practice in which inventory counts are taken at regular intervals, rather than continuously throughout the year. This method helps businesses maintain accurate records of all items purchased, sold and stored on their premises. By taking periodic inventories, businesses can better manage their stock levels, minimize shrinkage and make sure that goods are not held beyond their expiration date. In addition to providing more accurate figures for financial reporting, taking periodic inventories can also help to identify discrepancies in the inventory system and detect any possible fraud or theft.