Inventory Management using Quickbooks and Excel

Part 1 of 3

Inventory management at a small scale does not need to be complicated. With a little creativity, using Quickbooks and Excel, a workable inventory management system is possible.

We start by breaking down the reorder process in 5 simple steps and cutting away the unnecessary info.

Inventory Management

Flow Chart of Inventory Purchasing


Quickbooks‘ item list can be used as an effective inventory management tool. It has a reorder point feature built in that I have found sufficient for monitoring items such as books, videos and other similar products but falls short when used for monitoring herbs and herb blends.


Excel, though not a database is a great number crunching, graph creating tool of which I have only scratched the surface when it comes to discovering all the possibilities. I have not found anything I cannot do with Excel, yet.

In the following weeks I will walk through how we use Quickbooks and Excel to manage inventory. It is a simple setup, but we have found that the average small business doesn’t need complicated, we need effective, efficient and easy to duplicate.

Part One: Quickbooks and Excel (the simple inventory management system)

Part Two: Using Quickbooks to track inventory

Part Three: Using Excel to track inventory

We have not had a lot of formal training in inventory management. But we enlisted the help of Google in finding solutions to problems. We identified them as they came up or as we saw a need and we have had very good results with our current setup.

  • We have been able to properly project demand based on time of year and current growth.

  • We have total control over inventory levels based on calculations where product price breaks, shipping price breaks and turnover rates meet.

So finding that sweet spot becomes a math problem with a healthy dose of “judgement” mixed in.

Written by Carlos Schrock

I am the Buyer and Bulk Sales Rep at our Company, I am also the office manager and inventory control person. I love to analyze data and test my projections. I love to buy and sell.