When it comes to managing the inventory of a business, there is so much a business owner has to do. Managing the inventory includes a lot of things to be done such as keeping track of everything available in the inventory, quantity of each item in the inventory, details of the items that have been sold out as well as the items that are defective and a lot more.
Most of the people keep track of the inventory by using a spreadsheet. The benefit of using the spreadsheet document is that it simplifies the process of inventory management.
Benefits of using inventory spreadsheet for a small business:
- The inventory spreadsheet covers different aspects of the inventory.
- No matter which level of inventory you are at, the spreadsheet provides you with enough support.
- This spreadsheet keeps track of orders placed by customers and also the tax paid by them on each purchase. In this way, the total revenue generated and the taxable income of a business can also be determined.
- The spreadsheet will never let a business run out of any item in the inventory.
- You can prepare multiple inventory spreadsheets in the same file. The calculations in the current spreadsheet documents are done by the user very easily
The inventory spreadsheets are most needed when you have to do the physical count of the items available in the inventory. The accurate value of merchandise in the store is required to be provided by the company in some cases when a tax department demands it.
The total value of the inventory helps the tax department evaluate the financial health of the business. It also enables the tax department to know the total revenue a business generates.
What are the key elements of an inventory spreadsheet?
Typically, an inventory spreadsheet includes:
- The description of each item in the inventory
- A unique number of each item assigned to them in the inventory
- The quantity of the items available in the inventory
- The date on which the order of the customer was placed
- The unit cost of every item
- The quantity of the items brought to the inventory
Another usage of inventory spreadsheet is to prepare the inventory report. The inventory report is the best document to keep yourself updated about the information about the items that have been shipped. The status of the shipped items can also be seen in the inventory report.
In order to get the details about your acquisitions at any time, you should use the inventory spreadsheet.
In case of theft or fire, you will be able to evaluate the total loss incurred when you know about your acquisition in detail.
The inventory lost in any type of accident can be determined easily that can be helpful for you in case you want to apply for insurance. So it is always recommended to keep inventory spreadsheet with you in order to be clear about your inventory stock.