The simplest method comes down to four steps: do one full physical count, then record every movement the moment it happens rather than at end of day, then set a reorder point for each item, then do a quick weekly count of your fastest-moving items.
The problem with Excel isn’t Excel. It’s that Excel requires you to remember to update it. And you’re busy selling, not updating a spreadsheet.
Why Excel breaks down for inventory
- Delayed updates. You sell all day and update the sheet in the evening — if you remember. The number in the sheet never reflects reality.
- One device. The file is on the computer, and you’re in the shop or at the supplier.
- Human error. One wrong cell breaks the whole calculation, and nothing warns you.
- No alerts. Excel won’t tell you an item is about to run out. You find out when a customer asks for it and it’s gone.
- Disconnected from sales. Inventory and invoices live in two places, so you record every transaction twice.
What you actually need to track
Most people track more than they need, then quit. The useful minimum per item:
- Item name (plus a short code if you have similar items)
- Current quantity
- Cost price — essential for knowing your real margin
- Selling price
- Reorder point — the number at which you order from the supplier
- Supplier and approximate lead time
That’s enough to run a small shop. Anything beyond this can wait.
The method, step by step
1. Do one full physical count Close for an hour, or do it on a day off. Count everything physically. This is your only trustworthy starting point — any system built on estimated numbers will collapse.
2. Set a reorder point for each item Simple formula: average daily sales × supplier lead time in days + a safety buffer. Example: you sell 5 units a day, the supplier takes 4 days → 5 × 4 = 20, add a buffer of 10 → reorder at 30 units.
3. Record movements the moment they happen This is the single rule that decides whether the system works. Don’t defer recording to end of day. Every sale, every delivery received, every return, every damaged item — recorded immediately.
4. Quick weekly count of fast movers Don’t count everything weekly. Pick your top 10–20 fastest-moving items and count those. Those are the numbers that actually move.
5. Full count monthly or quarterly To catch accumulated discrepancies. Any gap between recorded and actual is a signal — either a recording error, unrecorded damage, or shrinkage.
The two metrics worth watching
1. Dead stock. Any item that hasn’t moved in 90 days is cash frozen on a shelf. Clear it at a discount rather than letting it sit.
2. Turnover rate. How many times your stock cycles per year. A low rate means you’re buying more than you need.
When do you need a dedicated tool?
While you have fewer than 20–30 items and sell from one place, a paper notebook can genuinely be enough. But the switch becomes necessary when:
- You pass roughly 50 items
- You sell through more than one channel (shop + WhatsApp + online store)
- More than one person works with you
- You catch yourself recording the same transaction twice — once on the invoice, once in inventory
At that point, a tool that links sales to inventory automatically saves you more than it costs.
Anjiz is built for exactly this case: inventory, invoicing, orders, customers, tasks, expenses, and your online store in one app on your phone — every sale deducts from stock automatically, with no double entry.
Bottom line
Inventory management is less about tools than about a habit: record at the moment it happens, not at the end of the day. Any system — paper or digital — works if you hold to that rule, and fails if you don’t.