Many small businesses use an inventory tracking spreadsheet or inventory management software to track their supplies, materials, equipment, and assets.
This article will walk you through the most effective ways for small businesses to track inventory and then help you choose between a spreadsheet or an inventory app. We’ll also provide a free small business inventory spreadsheet template to download and customize. You can always bulk upload the data from that spreadsheet to inventory management software at a later date.
How do small businesses track inventory?
Most small businesses track inventory using an inventory spreadsheet or inventory management software. While some businesses use pen and paper or another manual system, such a system is widely considered inefficient for businesses that stock more than a couple of dozen items.
Small businesses also usually decide between physical and perpetual inventory management strategies. The latter is considered the gold standard of inventory tracking because, when practiced, inventory databases are updated every single time an item is checked in or out.
For businesses that instead practice physical inventory management, inventory databases must be updated after the fact, usually on a regular basis, like at the end of the work day or the end of the work week. While this might make sense for smaller businesses, it can lead to discrepancies between actual and reported inventory that lead to over- or under-stocking.
This easy, comprehensive guide will help you:
Free Ebook: Getting Started With Inventory Tracking
Unique inventory tracking needs of small businesses
Virtually every business has unique inventory-related needs. That said, small businesses often require an inventory management software system that’s easy to set up, works on existing devices like smartphones and tablets, and can be utilized by employees who are not tech-savvy.
Additionally, small businesses, in particular, may lean on automation features that allow employees to achieve more in less time. Tools such as automated reports, low stock alerts, and in-app barcode and QR code scanning optimize inventory management while saving employees hours of time each week.
It is also worth noting that small businesses often benefit from implementing an inventory management system that can be customized to match their existing operations. Inventory management software solutions like Sortly are designed to be customizable and flexible.
Choosing between a spreadsheet or inventory software
For many small businesses, choosing between an inventory spreadsheet or software comes down to price. Fortunately, inventory software does not have to cost thousands of dollars a year to license. Instead, modern inventory management apps such as Sortly offer a variety of reasonably priced subscriptions designed to meet the needs of small businesses.
Another reason a small business may choose an inventory spreadsheet is that utilizing inventory software might seem overwhelming. Fortunately, inventory software differs from what it used to be 20 or even ten years ago. Today, the best inventory management software works like any other top-rated app on your phone. These solutions are lean and intuitive and have been engineered specifically to help small businesses track inventory on the go.
Another thing to consider is that spreadsheets are error-prone. This is chiefly because cells can get jumbled when using a spreadsheet, and data can be incorrectly transposed. Rows and columns bleed together, and items with similar names are hard to distinguish. To reduce the risk of human error, many small businesses use intuitive inventory management software that allows every item to display high-resolution photos and be linked to barcodes and QR codes that ensure complete accuracy every single time.
When performing inventory counts or checking an item in or out, employees simply use the built-in bar code/QR code scanner on their smartphones to pull up the item and make any necessary adjustments to its details. This, at its core, is perpetual inventory management, and its benefits include maintaining an always accurate inventory database and virtually eliminating the risk of most human errors.
Small business inventory spreadsheet template
If you’re not ready to switch to small business inventory management software just yet, consider utilizing our customizable small business inventory spreadsheet template. Downloading it is free, and you can customize it for your business’s unique inventory needs.
The template can always be uploaded to Sortly at a later time..
Download: Small Business Inventory Template
About Sortly
Sortly is an inventory management solution that helps you track, manage, and organize your inventory from any device, in any location. We’re an easy-to-use inventory software that’s perfect for large or small businesses. Sortly builds inventory tracking seamlessly into your workday so you can save time and money, satisfy your customers, and help your business succeed.
With Sortly, you can track inventory, supplies, parts, tools, assets like equipment and machinery, and anything else that matters to your business. It comes equipped with smart features like barcoding & QR coding, low stock alerts, customizable folders, data-rich reporting, and much more. Best of all, you can update inventory right from your smartphone, whether you’re on the job, in the warehouse, or on the go.
Whether you’re just getting started with inventory management or you’re an expert looking for a more efficient solution, we can transform how your company manages inventory—so you can focus on building your business. That’s why over 15,000 businesses globally trust us as their inventory management solution.
Start your two-week free trial of Sortly today.
