Why Keep an Inventory Spreadsheet: Forecasting, Formula and Free Excel Templates

September 1st, 2009

Free Inventory spreadsheet ExcelInventory Spreadsheet: Excel Spreadsheet for Inventory Management In order to run a successful business, you need to keep control of your inventory. There is no way around it. If you do not have a valid inventory management system, then you don’t know what’s going out, what’s coming in and what’s still in stock. Furthermore, you will not be able to control the supply and demand of your products, which is what drives a business forward.

This is why you need an inventory spreadsheet control system.

One of the easiest ways to keep control of your inventory is with a spreadsheet. With a proper inventory spreadsheet you will be able to easily keep track of the number of goods coming in, the cost of these goods and the date of these goods. You can also keep track of the sales side of the goods such as the customer details, the dates, the qualities and the sale price.

With this information you can predict what you need to buy more or less of and calculate your inventory turn rate, an extremely important formula in the business world.

Inventory Spreadsheet: Free Excel Spreadsheet or Inventory Management System? Excel is an easy program for designing spreadsheets. You can input the data into the different columns and rows and change the style to suit your needs. Furthermore, you can actually find free Excel inventory spreadsheet samples online. You can download the templates and simply plug in your own information. This is fast, useful and free.
While Excel spreadsheets may work for a small or a new business, you will most likely need to graduate to a more advantaged system when your business begins to grow.

There are different programs designed to help you control inventory. When you are buying and selling multiple items for different prices, then you need to use a computing system. An inventory management system is a computerized method of organizing your warehouse or stock room. Every single item that comes in and goes out is accounted for. This is with a bar-coding or a tagging system so you can easily track where you items are, and where they are going.
Inventory Spreadsheet and Forecasting One of the main reasons for using a spreadsheet for inventory is to predict the trends in the future. This will help to ensure that you are not overstocked, or under stocked. Both of these can cause heavy cost-related problems for your business.
One of the ways of using a spreadsheet to find this information out is with the inventory turn formula.

Inventory SpreadsheetFormulas: Turn Rate Inventory turns is how many times you are selling your inventory in a year. Generally, the higher the rate, the better. This is because a lower inventory turn rate means that you are paying more holding costs. There is a specific formula for inventory turns which is as follows:

Inventory Turns= Cost of Goods Sold (over a given period)
___________________________________
Average Inventory (for that period)
An inventory spreadsheet can help you determine this information and ensure that your inventory is making you the most money possible.