Where a business holds considerable quantities of varied inventory, there is a need to maintain continuous inventory records which is a “card” kept for every item of inventory, showing receipts and issues from the stores and a running total.

Continuous count means:

To ensure the record cards are correct, store personnel will then need to at least count a few inventory items every day. This is so-called  “continuous count” where it is spread out over the year rather than completed in one count at a designated time.