The term inventory is used in business to mean the goods or stock that a business posses to sell them. A business without inventory management software experiences a difficult time in managing their inventory. Too much inventory in business may lead to reduced cash flow in the business because it translates to poor sales. At the same time lack of inventory in business also leads to reduced cash in the business as there is nothing to sell.
Inventory management software is of much importance. But for the case of small businesses that cannot afford to have this software, inventory template is their best method of managing their inventories.
What is the Purpose of an Inventory Sheet?
The inventory sheet serves many purposes in ensuring the success of the business goal.
Keeping a record of goods and material: Inventory sheets keep the record of every item in the business. This ensures the smooth running of the business.
Budget planning: The inventory sheet keeps the record of all items in the stock. This will help in your budget planning to know what to add and what is in excess. Inventory sheets are equal to the money in the business. It also helps in planning the project that the business should undertake at that time. For instance, the sheets can help you concentrate on paying business loans because the inventories in stock will run the business for the next two months or so. And so you can comfortably pay the loan with no fear that you will go out of stock.
Ensuring customer satisfaction: Customers have nothing to do with stock-taking or shipping; all they want is to get their commodity when they need them. Failure to this can lead to loss of the customer which translates to future potential loss. Inventory sheet helps you to know that what a customer needs will be available by the time they get it.
Enhance efficiency: The inventory sheet keeps the record of the business running. Keeping an always up to date inventory sheet shows you goods in stock, the goods or material sold, the goods and material ordered from the manufacturer, and the cost of purchase as well as the cost of selling. This helps in measuring the business efficiency at the end of it all. The inventory sheet ensures that the demand and supply of goods and materials are in balance.
Basic Contents of an Inventory Sheet
Generally, a standard inventory sheet is laid in rows and columns. It consists of many columns as the number of every inventory.
Name of the inventory: The first detail to indicate is the specific name of the inventory. The inventory details and description is written across the row while down the column are the names of each inventory.
Category: The second row is the category row. This is the category that the inventory falls in as per your classification of goods and materials that you deal with. For instance, groceries, pharmaceuticals, cosmetics, and such.
Availability: This is the number of each inventory present in the stock.
Date and time: This is the date and time that the inventory was checked.
Unit price: This is the unit price of a single inventory.
Inventory value: This is the total value of all the similar inventories in stock. This is obtained by multiplying the availability number with the unit price.
Lead time in days: This is the estimated time that the inventories can take from the time of order to the time it is supplied.
Reorder point: This is the unit quantity of inventories at hand. This is obtained by multiplying the average daily demand rate with the lead time.
Order Quantity: This is the number or volume of inventories required to be ordered so as to meet the demand while reducing the cost per order.
Free Inventory Templates
Free Apps to Manage the Inventories
Stockpile by Canvas: This is a free web-based inventory managing app. It allows you to create a free account and add as many items, users and locations as you need. It also allows you to add inventories, track your stock count, make returns among other functions.
ZhenHub: This is a free cloud-based inventory management app. It allows warehouse management, inventory and shipment tracking, This is ideal for small and midsize businesses.
Asset & Inventory Tracker: This is a free inventory management app for IOS, Android, Web, and Desktop. This app allows the uploading of asset profile photos.
InFlow Inventory: This free inventory management app is ideal for all business sizes. It has a managing capacity of up to 100 inventories and customers.
Shortly Pro: This is a cloud-based free inventory management app. It allows one user and up to 100 product management per month. It is ideal for all business sizes.