Introduction to Manage Expenses in a Spreadsheet

Managing an online business effectively includes the crucial task of tracking materials and expenses, with inventory management being a key component. Inventory management involves a delicate balance. Having too much inventory can be burdensome, as it requires additional storage space and ties up capital that could otherwise be used for different aspects of your business. On the other hand, too little inventory might lead to delayed order fulfillment or, in worst-case scenarios, the need to cancel a customer’s order. While there are various tools and online software programs available to assist with inventory management, these can sometimes be costly. An alternative is using Google Sheets, a free tool accessible on any device. Google Sheets not only helps in managing business expenses but also ensures that your data is readily available, being saved to Google Drive.

In this activity, Google Sheets is utilized to meticulously record your inventory, keeping track of the quantity of each product or material you have in stock. This tool will also aid in calculating sales and determining profit, which is the amount remaining after all expenses have been accounted for. Additionally, it provides insights into your sales patterns, helping you identify if a particular product has been oversold, this preventing customer disappointment or loss of orders. To begin, simply open a new tab in your browser and access Google Sheets via the Apps menu. Start by creating a new blank sheet, titling it “Business Expenses,” and prepare to input your business inventory details.