What is inventory tracking and why does it matter?
Inventory tracking is the process of monitoring, managing and organizing all the items your business stores. A reliable inventory spreadsheet ensures you always know:
- What’s in stock
- What’s running low
- What needs to be reordered
Without a system in place, your business risks overstocking, understocking or losing track of valuable inventory.
That’s where an inventory tracking spreadsheet comes in — it helps you maintain balance, reduce waste and improve customer satisfaction.
The best methods for inventory management
There’s no one-size-fits-all when it comes to inventory systems. Below are three of the most popular methods — all of which can be managed with a free inventory spreadsheet:
FIFO (First In, First Out)
Sell your oldest stock first. Perfect for perishable goods and ensuring products don’t expire on the shelf.
LIFO (Last In, First Out)
Use or sell your most recent stock first. Often used in industries where prices fluctuate frequently.
Weighted Average Cost
Smooth out price fluctuations by calculating the average cost of all items in the inventory.
Each of these methods can be adapted within your inventory spreadsheet Excel template using simple formulas.
Why use an inventory spreadsheet?
For small businesses, a spreadsheet can be just as powerful as an expensive inventory software — when structured the right way.
✔️Customizable
Easily tailor the spreadsheet to your product types, categories, and tracking needs.
✔️ Accessible
Use it in Google Sheets for real-time collaboration, or download the Excel spreadsheet for inventory tracking on your desktop.
✔️ Budget-Friendly
Ideal for startups and small businesses — no software costs, no learning curve.
✔️ Compatible with inventory methods
Works seamlessly with FIFO, LIFO, or Average Cost strategies.
Take the stress out of inventory tracking
Managing stock levels doesn't have to be overwhelming. With JIM’s ready-to-use inventory spreadsheet template, you can track every product in real time — all within Google Sheets or Excel.
How to create an inventory spreadsheet in Excel or Google Sheets
Not sure how to make an inventory spreadsheet from scratch? We've broken it down for you:
1. Set up your headers
Include columns like:
- Item ID
- Product Name
- Quantity in Stock
- Unit Price
- Date Received
- Date Sold
Each row will represent a unique product or SKU.
2. Add key formulas
Use Excel or Google Sheets formulas to automate calculations:
- VLOOKUP to search for product prices =VLOOKUP(A2, A:D, 4, FALSE)
- SUMIF to total quantities per category =SUMIF(B:B, "Electronics", C:C)
3. Automate your workflow
- Use data validation for dropdowns
- Freeze headers for easier scrolling
- Apply conditional formatting to highlight low stock
All of this is built intob JIM’s inventory spreadsheet Google Sheets template, so you don’t need to start from zero.
But don't start from scratch — we've done the work for you
If you’re unsure how to create an inventory spreadsheet or simply don’t have the time, don’t worry — we’ve done the hard part for you.
JIM’s free inventory spreadsheet is designed for ease of use, clarity, and reliability. Simply:
- Add your product list
- Log stock movements
- Monitor sales and restocks
- Stay in control of your inventory, every step of the way
What’s inside JIM’s inventory spreadsheet template?
When you download JIM’s inventory tracking spreadsheet, here’s what you get:
- A pre-built layout for easy product registration
- Columns for purchase & sales tracking
- Smart formulas for total value calculation
- Editable structure for custom categories
- Fully compatible with Excel and Google Sheets
Perfect for managing day-to-day operations in a small business inventory spreadsheet template format.
