Understanding how to use the Simple Inventory Tracking Spreadsheet can help you avoid running into any problems when setting up your accounting system. In this article, I will explain how to set up an effective inventory tracking system, including the types of items that you need to track, what you need to track, how to keep track of what you are tracking, and how to maintain a budget.
Inventory tracking is not hard to understand but it’s a little bit different to do than just keeping track of a few numbers. The most common way to handle it is to have every employee track their own inventory. It may seem simpler, but then they will forget what you put in their budget. If you are using the inventory-tracking spreadsheet, make sure you record everything to make it easier to remember.
You also need to know where to put the tracking software so that you don’t get confused. At the end of each week, write down the sales, personal purchases, and seasonal bonuses. When you get your expenses for the previous week, note them down as well. This will make it easier to see the difference between sales and other expenses and your personal purchases.
For a week’s worth of sales, add in all of your personal purchases, and sales minus your sales taxes. In a spreadsheet, you can have columns for Personal Purchases, Sales, and Tax Amounts. If you want to be more specific, you can use other columns to do that.
Each time you get paid, you need to record the amount of money that you made. If you need to have more than one person working on the spreadsheet, you can just have the person who is in charge of the information enter the information one time per sheet. This makes things more organized and it helps if you only have one person doing it.
You need to divide the total number of sales for the month’s sales by the total number of personal purchases and then divide the average price by the monthly sales. Then you just need to divide the average price by the tax amount. Remember to add these amounts together and you should get the average number.
After dividing the average number by the tax amount, multiply the result by ten. This is your sales for the month.
Write down all of the personal purchases that you did during the month, and use the same amount that you entered for sales to compute your inventory totals. This will help you keep track of how much you are spending and when you have a lot of inventory, you may want to hire a contractor to help you keep a tab on the inventory levels for you.