Physical inventory is an important part of any business’s operations. It refers to the physical counting and verification of all the items in a storeroom, warehouse, or onsite storage facility. This process helps to ensure that all inventory is accounted for, as well as verifying accuracy against current records. By regularly conducting physical inventories, businesses can identify discrepancies between what they have on record and what is actually present in their storerooms and warehouses. This process is essential for preventing stockouts or overstocking, and for staying in compliance with applicable laws.