How to Track Inventory in Google Sheets (Beginner Guide + Template)

By InventAsset · 2026-10-07 · Written with AI assistance, reviewed by InventAsset

Google Sheets is free, works in a browser, and is surprisingly good at tracking inventory for a small business. You don't need to be a spreadsheet expert. If you can type in a table and copy a formula, you can build a tracker that tells you what is in stock and what to reorder.

This beginner guide walks through it from a blank sheet. You will need a free Google account.

The one idea that makes it work

Many people start by making a single table with a "quantity" column and typing over the number every time something sells. It feels simple, but it fails fast: you can't see what happened, mistakes are invisible, and two people editing at once overwrite each other.

The better approach uses two tabs:

The sheet then calculates stock on hand from the movements. You never type over a total again.

Step 1: Create the sheet

Go to sheets.google.com, start a blank spreadsheet and name it something like "Inventory 2026". Rename the first tab Items and add a second tab called Movements (use the + button at the bottom left).

Step 2: Set up the Items tab

In row 1, type these headers:

A: ItemB: CategoryC: UnitD: Opening qtyE: Reorder levelF: On handG: Status

Fill in your products from row 2 down. For the opening quantity, use a real count of the shelf today. For the reorder level, think about how many you sell while waiting for a new delivery.

Tip: freeze the header row with View > Freeze > 1 row, so it stays visible as you scroll.

Step 3: Set up the Movements tab

Headers in row 1:

A: DateB: ItemC: TypeD: QtyE: Note

Now add dropdowns so entries stay consistent:

  1. Select column B, choose Data > Data validation, add a rule "Dropdown (from a range)" and pick Items!A2:A.
  2. Select column C and add a dropdown with the values In and Out.

Dropdowns are the single best way to stop typos from breaking your totals.

Step 4: Calculate On hand

On the Items tab, in F2, enter:

=D2 + SUMIFS(Movements!D:D, Movements!B:B, A2, Movements!C:C, "In") - SUMIFS(Movements!D:D, Movements!B:B, A2, Movements!C:C, "Out")

Copy it down for all items. Each item now shows opening quantity plus everything in, minus everything out.

Step 5: Add a status and colours

In G2:

=IF(F2<0, "NEGATIVE STOCK", IF(F2=0, "OUT OF STOCK", IF(F2<=E2, "REORDER", "OK")))

Then use Format > Conditional formatting on column G: yellow when the text is REORDER, red when it is OUT OF STOCK. Now a quick glance shows what needs attention. Use Data > Create a filter to show only REORDER rows when you are writing a supplier order.

Step 6: Use it every day

Common beginner mistakes

What Google Sheets can't do

A spreadsheet tracks quantities well. It is not a till, it won't scan barcodes on its own, and it isn't designed for valuation, profit reports or many warehouses. If you need those, look at inventory or POS software.

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Quick recap