If there is something every small business owner learns early on, it's the importance of inventory management. It isn't just about controlling how much stock you hold, it's also an important part of asset management, stock replenishment, forecasting, cost sheets, faulty goods returns, valuation, future price forecasting, and the physical space you need for inventory.
Excel Inventory Template
Inventory Management Defined
Inventory is any finished goods, parts, or materials you keep on-site, whether it's on a shop floor or in the warehouse. It is the most important factor in your business because it is what generates cash flow.
An organised inventory system, for the purposes of inventory management, is vital for businesses of all sizes to ensure hiccups are avoided. It is a key component of supply chain management. It is about keeping track of non-capitalised assets to supervise your flow of goods from the manufacturer to the warehouse to the point of sale. Inventory management improves surveillance, customer relations, customer service, prevents wastage, controls mishandling, increases profits and sales, and helps manage time more effectively.
How To Manage Inventory
The most efficient way to manage your inventory is with inventory management software. If you don't have access to inventory management software you can get a 30-day free trial for QuickBooks.
You could also use an inventory spreadsheet in excel, though this does have its limitations. Your inventory spreadsheet should reflect your inventory list and highlight your stock levels. A spreadsheet inventory management template should also list cost prices, the supplier, when stock is due, when it should be ordered, the quantity of stock you're holding, as well as the total value of that stock.
Establish clear location names for your products and labels to reflect them. Provide clear item descriptions and numbers, whether you use UPCs or SKUs. Decide what unit of measure is appropriate for your business, whether it's kilograms or pounds or each or a case. You also need to create policies around stock and inventory management and train the relevant team members. You can reflect all of this information on your inventory spreadsheet template.
How To Use The Inventory Spreadsheet
The inventory spreadsheet template is simple to use. All you need to do is input your products and the relevant information. You can group it by type or location, whatever is easiest and most efficient for your particular business. If you stock items like food, then subgroups by frozen, ambient, and chilled might be more efficient. However, a liquor store may opt to work by the spirit or colour of the wine.
You can easily track your products, office supplies, food, or stock with a free excel inventory spreadsheet. All you need to do is customise them for your business. Use it to manage your orders, control your stock, identify best sellers and track sales, and gain a deeper understanding of how your business is performing.
How QuickBooks can help
While managing inventory can be easy at first, it can get more difficult as your business grows. There may be more fields, more calculations, and it can be easy to lose track of inventory in a big document. QuickBooks inventory management software can help your business easily manage inventory with features like real-time stock value tracking, low stock alerts, order tracking and more.
To learn about migrating to QuickBooks from excel visit our data migration page. You can also get a 30-day free trial of QuickBooks from our pricing page.
You can also visit our free tools and templates hub to find more free assets that can help you run and grow your business.
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