How to Inventory a Craft Store

A strong inventory management system not only helps you value your craft store, it also reduces employee theft. The amount of inventory management you need depends on the size of your store and the method you use to store inventory. For a small craft store, taking inventory once a year may be sufficient to control your inventory.

Instructions

1. Decide what method you want to use for inventory management. You can buy inventory software, hire an independent contractor or perform your own inventory count.

2. Install inventory software and machines. Some craft stores implement a barcode system for up-to-date inventory counts. The receiving manager or worker scans in all the new arrivals and the cash register deducts sales from the total inventory.

3. Hire a professional inventory company to conduct an inventory. Professional companies work with a variety of budgets and can tailor a plan to fit your business needs. If all your products have barcodes, it speeds up the time it takes to inventory your craft store.

4. Conduct a manual inventory of your store. In a manual count, you can still use your software program, but you or your staff manually conduct the inventory. The benefits to this include an accurate account from people you trust.

5. Include items currently on the shelves and in back stock. If you paid to receive goods, you can include the value for taxes or valuing your business. Unless boxes are sealed, open any boxes to get an accurate count of the product.

Tips & Warnings

• While you don't have to inventory at the beginning of the fiscal year, keep your inventory periods the same to allow for year-to-year comparison.