# Tracking & Managing Inventory - complete beginner question



## japancast (Nov 21, 2013)

Hello everyone - 

I'm new here, but I've searched the forums and haven't found an answer yet. We sell not only t-shirts but things like messenger bags, backpacks, hats, etc. We only have an online presence, so no storefront.

My accountant explained to me that our state requires me to have an inventory of everything we've purchased/produced over the year, what it cost and then a list of what we've sold.

So far, I've simply priced things based on what they cost to produce per unit and I track inventory manually - reordering/reprinting when necessary. But that means sometimes I'll reprint just size SM and MED for a particular design, and that inventory gets mixed in with the previous inventory.

And since we sell through a few different sites, at different prices (sales, coupon codes, etc.), there's no easy way to say we had 200 of product X, it cost us Y and we sold all of them for Z.

I tried StitchLabs and after it totally screwed up my inventory, causing several people to order things that weren't in stock, I gave up on using them.

I also looked at inFlow, but it's Java based and seems very slow and clunky.

But I suppose more importantly than that is, are there any good resources that explain the best way to track and manage inventory like ours? I've searched all over and even what were supposed to be introductory videos used all sorts of terms and jargon I didn't understand.


Thanks!

Paul Griswold
Japancast.net


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## johnconvoy (Nov 29, 2013)

That's a toughy. I know there's some shop software suites out there with inventory management but if you just want that piece, maybe Excel could help? 

Another route is hiring a web developer and spend around $5k or so to get something built.


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## japancast (Nov 21, 2013)

Thanks!

Over Thanksgiving I talked with my 70 year old father about it & he said I'm making things more complicated than they need to be. He's been in sales for his entire life & has tons of experience with inventory.

It might be something as simple as an Excel sheet. I just started getting flustered when I heard things like "first in first out inventory" and my accountant making me nervous about what happens if you get things wrong when tax time comes.

-Paul


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## johnconvoy (Nov 29, 2013)

Yeah, you're probably right. Get the business process down, then use technology to make it more efficient...pay the accountant to work around you.


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## stitchwell (Nov 6, 2013)

I have been using a Developer for my Company that includes Inventory and Web development, Please let me know if you are interested.


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## 4 the Team (May 31, 2013)

japancast said:


> Thanks!
> 
> Over Thanksgiving I talked with my 70 year old father about it & he said I'm making things more complicated than they need to be. He's been in sales for his entire life & has tons of experience with inventory.
> 
> ...


So I am an oddity in this biz because my education is in accounting and i now own a screenprinting, embroidery, and engraving co. FIFO "first in first out" is the typical choice. Your other option is LIFO "last in first out" in our business we usually order our blanks as needed for printing so we dont need to worry too much. Just go with fifo. You dont need too detailed an inventory system. I use QuickBooks, because that is how i invoice my sales and pay my vendors. 
Basically what the accountant needs is what your beginning inventory was + what you purchased - what you sold and/or waste = your inventory at the end of the year.
Let me know if i can be of help. The better your paperwork is for the accountant, the less you pay to have your taxes done!
Have a good one.


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## codyjoe (May 6, 2013)

It may be very simple but Google Drive has enabled us to track everything in our shop going in and out without problems.

Just create a simple spreadsheet with columns labeled with the information needed and just make sure you update it at the end of each day so it's ready to go the next morning.


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## japancast (Nov 21, 2013)

Thanks!

I think I was really overthinking things. I was trying to figure out how to calculate or organize things like setup fees for screens, etc., but I suppose the way to do it is to just take the total cost for a run of shirts & divide it by the number of shirts. Or the total cost of something we've imported, including shipping, etc., divided by the number of items. Because really the cost of an item includes all those things anyway.

So when you guys set up a spreadsheet, Google Drive version or not, you are only tracking what you have right now, correct?

I guess part of my confusion was thinking that you'd want to keep a running record of what you had, what you ordered, when you ordered them, etc., rather than just a "live" inventory.

How would you figure the per unit cost if prices change, but you still have old stock?

Thanks again for the help!

Paul


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## 4 the Team (May 31, 2013)

Are you printing items for stock and future sales, by the job or some of both?


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## codyjoe (May 6, 2013)

We actually found a very easy way to track inventory all for free. Just create a custom spreadsheet in Google Drive and it'll help solve a lot of your problems. Just make sure that at the end of each day you review your sheets on Drive to make sure they're ready to go for the next day.


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