Inventory management: moving from Excel to inventory software, step by step

Where Excel inventory tracking breaks down

In an Excel sheet, stock balances are usually typed in by hand or calculated with formulas. With one person working on the file, that is manageable. But once sales, the warehouse keeper and the accountant all touch the same file, errors pile up and their source becomes hard to find.

• Formulas get deleted by accident or break when rows are added.
• Only one person can comfortably work on the file at a time, while others look at an old version.
• There is no way to see who changed a balance, when and why.
• Stock reserved for orders is not separated from free stock, so the same item is promised to two customers.
• With several warehouses, transfers get lost across different sheets.
• Nobody is alerted when an item drops below its minimum level.

Before you switch: clean up your product list

The product list (item master) is the foundation of inventory management. If the same item is entered on three rows as “Water 0,5”, “Water 0.5 l” and “Mineral water 500ml”, no software will show the correct balance. That is why cleaning up the list before import is the most important step.

• Adopt a single naming rule: type, brand, size and colour always in the same order.
• Give every item a unique code; if it has a barcode, record it separately.
• Keep the unit of measure in its own column and do not include it in the item name.
• Merge duplicates and set aside items you no longer sell.
• Separate goods from services: delivery and installation should not appear in stock balances.
• Define minimum stock levels in advance for fast-moving items.

Moving from Excel to software: 6 steps

Avoid switching during holidays or your seasonal peak: in the first weeks staff are getting used to the new rules and work slows down a little. Starting in a quiet period lets you spot errors in time.

• Choose a cut-off date, such as the first working day of the month. From that date on, all movements are recorded only in the software.
• Do a physical count on the cut-off date. The opening balance should be what is counted on the shelf, not the figure in Excel.
• Import the cleaned product list and counted balances into the software; test with a small file first.
• Define the document flow: which document brings goods into stock, where they leave on a sale and who handles transfers.
• Assign roles: the warehouse keeper records receipts and transfers, salespeople create orders, managers review reports.
• Run a control count at the end of the first month and analyse the causes of any differences.

The core principle: balances come from movements

In proper inventory management, nobody “fixes” a balance by hand. The balance is simply the result of movements: receipts, issues, transfers between warehouses and stock-count adjustments. Each movement has a date, quantity, warehouse and the person who made it, so you can always trace where a figure came from.

The second key concept is reservation. If a customer has placed an order but the goods have not been delivered yet, they are physically in the warehouse but cannot be sold to anyone else. That is why you need to separate three figures: balance (physical quantity), reserved (set aside for orders) and free stock (balance minus reserved). Salespeople should only promise what is in free stock.

Stock takes: when and how to count

Even the best software cannot see theft, damaged goods or unrecorded issues on its own. Only regular counts reveal them. In small warehouses it makes sense to do a full count once a quarter and more frequent cycle counts for fast-moving and high-value items.

• Do not record receipts or issues in that warehouse during the count, otherwise the difference will be calculated incorrectly.
• The person counting should not see the system figure; a blind count gives more honest results.
• Do not write off differences immediately: check the cause first, then approve.
• Formalise the result with a report signed by the counter, the warehouse keeper and a manager.
• If differences keep appearing on the same items, look for a gap in the process.

Common mistakes

• Carrying over Excel balances as opening balances without a physical count.
• Continuing parallel records in Excel after the switch.
• Closing differences with adjustments without giving a reason; after a few months nobody knows what changed and why.
• Setting up services as goods and showing them in stock balances.
• Giving the warehouse keeper software without defining the document flow and responsibilities in writing.
• Not checking a sample of items against the shelf after the import.

Inventory management in SBT CRM

In the Stock & Warehouse section of SBT CRM, each item shows its balance, reserved quantity and free stock separately. Balances cannot be typed in by hand: they are calculated from receipts, issues, adjustments and transfers between warehouses, all of which appear in the Movement log with who made them and when. Items are loaded from Excel with Import .xlsx; the easiest way is to export first and use that file as a template. When free stock drops below the minimum level, warehouse keepers and admins are notified.

On the Stock count tab, a count starts as a draft, and quantities can be entered by hand, with a barcode scanner or through an Excel sheet; a blind count option is also available. After approval, differences are posted to the log and the count report prints with three signature places. Businesses selling phones and electronics can track the IMEI or serial number of every unit. This module is available on the Business and Enterprise plans.

At SBT Consulting & Solutions, the first thing we do in a migration project is always to clean up the product list and the opening count. With that preparation in place, the switch is shorter and you can trust your balances from day one.

Frequently asked questions

How do you keep inventory records properly?

Give every item a single code and unit of measure, record all receipts, issues and transfers with a document, calculate balances from those movements and compare them with physical stock through regular counts.

Can I manage inventory in Excel?

Yes, with a small range and a single user. Once you need several warehouses, reservations, several people working at once and a movement history, Excel leads to errors and dedicated software becomes more reliable.

How should I enter opening balances when switching to software?

Do a physical count on the cut-off date and import the counted quantities. Copying Excel figures without checking them carries old errors into the new system.

How often should I do a stock take?

It depends on your range and risks. In practice, full counts are done at least a few times a year, with more frequent cycle counts on high-value and fast-moving items. Check tax and accounting requirements with your accountant.