How often do you need to count inventory if you maintain it using the perpetual system?

In a perpetual inventory system, inventory levels are updated in real-time with each transaction, making frequent physical counts less critical. However, it's still advisable to conduct periodic counts, typically quarterly or annually, to verify accuracy and identify discrepancies. These counts help ensure that the recorded inventory matches the actual inventory on hand. Regular audits also help to mitigate potential errors or losses.