Too much stock ties up cash and goes out of date. Too little loses sales. For many small businesses, a well-organised Excel or Google Sheets system is all you need to get inventory under control.
1. Build a clean item list
Give every item a unique SKU and record its description, unit (pcs, box, kg), cost price, selling price, supplier and storage location. Consistent SKUs are the foundation of everything else.
2. Record every movement
Log goods received, sales and issues, returns and write-offs with date, SKU, quantity and reference. Current stock = opening stock + received − issued. A Stock In & Out Register calculates running balances for you.
3. Set reorder points
A reorder point tells you when to buy:
Reorder point = average daily usage × supplier lead time (days) + safety stock
Example: you sell 10 units a day, the supplier takes 7 days, and you keep 20 units of safety stock, so you reorder at 10 × 7 + 20 = 90 units. The Reorder Point & Safety Stock Calculator works this out for every item.
4. Count regularly
Physical counts catch errors, damage and theft. Count high-value and fast-moving items (your "A" items) monthly and the rest quarterly. Record the variances with a stock take count sheet and investigate anything large.
5. Watch stock value and slow movers
Stock value = quantity × cost. Review items with no sales in 90 days and decide whether to discount, bundle, return or write them off.
When to move beyond Excel
If you have thousands of SKUs, several locations updating at once, or need barcode-driven picking, look at dedicated inventory software. Until then, a disciplined spreadsheet is fast, cheap and flexible.
Do it in minutes: download the Inventory Tracker (instant download, works in Excel and Google Sheets). Need the related files too? Browse inventory management templates or get 25 business templates for AED 29 in our value packs.
This guide is general information, not legal, tax or financial advice. Rules change, so check the latest official guidance or ask a qualified adviser for your situation.