Year-End Inventory Count

Year-end inventory count is a comprehensive physical inventory check that many dealerships perform at the end of the fiscal or calendar year to verify the existence and condition of all vehicles (and sometimes parts) against the books. It's similar to an audit but specifically timed for accounting purposes – reconciling what's on the lot (and showroom) with what the accounting records show as unsold stock. Every vehicle by VIN is accounted for: new vehicles, used vehicles, demos, loaners, and sometimes vehicles on consignment or belonging to the manufacturer. In a Canadian context, year-end might also coincide with the slow period during holidays, making it a practical time to do a thorough count. The process might be required by auditors if the dealership’s financial statements are being formally audited. It involves listing all vehicles, noting their status (on hand, if sold not delivered, if out on demo, etc.), and matching them to the inventory ledger. If any discrepancies are found (e.g., a car that is supposed to be there but isn’t, or vice versa), they investigate — sometimes it’s a timing issue like a deal finalized just after year-end that wasn’t recorded yet. The year-end count also often pairs with a parts inventory count for the same reasons of accuracy. This process ensures the dealership’s assets (cars in stock) are accurately reported for financial and insurance reasons. From a management perspective, it's an opportunity to spot any vehicles that might have been \lost in the shuffle\" (e.g.