Cycle Counting is an inventory auditing method in which a business counts small, targeted subsets of inventory on a regular schedule instead of performing a full physical inventory all at once. This allows organizations to maintain accurate inventory records continuously without shutting down operations.

Cycle counts involve selecting specific items or locations, often based on value, turnover, or location, and verifying their quantities against system records. Regular discrepancies can then be investigated and corrected, improving overall inventory accuracy.