As long as there isn't anyone doing anything that wouild change on-hands counts, i think you can start at time. At my store, we have always done it at 6am. That way the backroom team is done in the stockroom. The backroom is too small for more than 2 or 3 people in it.
BTW, the return scan is supposed to be sending back lifescapes cds now. But I still haven't noticed anying going back.