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Accounting
Periodic Inventory System
A simple system where you count inventory only at the end of the period instead of updating it every sale.
Periodic systems are cheap and easy for tiny businesses. You don't record inventory changes during the year — you just do one big count at the end. It's less accurate but way simpler.It's like waiting until the end of summer to count how many sodas you drank instead of tracking each can as you open it.
Real world: A small neighborhood hardware store counts every nail and paint can once a year, then calculates cost of goods sold from the difference.
💡 Periodic inventory works fine for small shops with slow-moving stock — just remember to actually do the physical count or your numbers will be wrong.