What is the purpose of an inventory spreadsheet?


Quick Answer

An inventory spreadsheet keeps track of items purchased and sold by a business and contains information such as stock check date, amount in stock, unit price and inventory value. Inventory sheets vary for different business types, such as restaurants or retail outlets.

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Full Answer

The proper way to construct an inventory spreadsheet is to utilize spreadsheet software and dedicate one page to each specific product. The data displays on a table, with each column representing a component of the inventory. Product name and description help the business understand the specific item. Amount in stock lets the business know the quantity on hand, and accountants or business analysts multiply this figure by the unit price to get the total inventory value. Analysts then compare the amount on the inventory spreadsheet with the physical value on hand.

As a business purchases new inventory items, the quantity in stock column increases. A subsequent sale of the item increases the quantity out field. It is important to be as descriptive as possible, especially when dealing with items under a specific category. Businesses use inventory sheets to track a category, such as clothing, and then find more specific details, such as how many shirts or pants are in the inventory.

Certain accounting software also allows for an inventory sheet to contain attachments, such as related receipts or invoices. Business owners can set alerts on their inventory spreadsheets to receive notification when a certain item count or threshold is met.

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