3 Things Office Managers Need to Know About Office Supplies

Every department, from marketing to finance to facilities, needs office desk supplies to ensure the smooth functioning of tasks. But over time, office supplies can add up to high costs if not monitored or carefully managed. 

Whether you’re looking to learn more about how to classify your expenses related to office supplies or simply want to learn ways to manage office supplies, this blog post has you covered. 

1. What is the difference between office supplies and office equipment?

Business or office supplies include all the items needed to run a business and for employees to do their jobs smoothly. These supplies are purchased and typically used up during the course of the year. The most common types of office supplies are pens, paper, staplers, sticky notes, paper clips, binders and so on. Although office supplies may seem like they are an asset because they hold value, they are recorded as an expense. It is essential to differentiate between office supplies and inventory. Inventory is considered an asset as it is not consumable. 

Office equipment or business equipment is a functional, tangible property used to facilitate office production. Unlike office supplies, equipment is considered more permanent and long-lasting. Standard office equipment includes machinery, office furniture, vehicles, computers, electronic devices and so on. More advanced office equipment can consist of fingerprint sensors, eye scanners, high-tech cameras and video conferencing equipment. Office equipment, unlike office supplies, is usually recorded as an asset and expensed over an extended period rather than expensed immediately. Equipment does not include land or buildings owned by a business.

2. How to keep track of office supply inventory?

Keeping track of inventory is exceptionally essential in a business, as you cannot risk having activities coming to a standstill because you ran out of supplies. Once you know what supplies your workplace needs, it is crucial to track spending by using these simple rules of basic office supply management.

Rule 1: Have a manager

A manager is one of the most important rules for good inventory management. This manager will need to know what is available, how long it has been there, and when it leaves the supply area. Access should also be restricted to a few key employees to ensure proper log-keeping. 

Rule 2: FIFO method

The FIFO method stands for ‘First In First Out’. It is a clever way to prevent inventory from becoming old or obsolete and being wasted. It states that the first items purchased should be used first. As a general rule, shelve new inventory behind older inventory so that older supplies can be used first. 

Rule 3: Organise supplies effectively

Stemming from the previous point, the key to proper inventory management lies in the organisation of supplies. Place the most used office supplies at eye level and within easy reach. Stock lesser used items on higher shelves but check these from time to time to ensure they are not forgotten. Lastly, make sure to purge obsolete items on a regular basis.

3. How to make an effective office inventory list?

Whether you are a small business or a sole proprietor running your company from home, maintaining all needed office supplies that are vital for your business’s day-to-day operations is a must. You don’t want to run out of essential supplies, but you also don’t want to waste valuable money keeping unnecessary office items around. This is where an office inventory list comes into play. Below is how you can track your office supplies effectively: 

1. Start in one location, walk around and note the various office supplies you have. Check areas such as supply closets, break rooms and bathrooms. 
2. Note how many of each item you have and if you need any additional supplies.
3. Use this information to create a digital inventory list on MS Word or Excel. Save this template.
4. Separate the supplies into groups like paper supplies, printer supplies, writing instruments, mailing and shipping, desktop essentials and miscellaneous. 
5. Fill in the details for each category and save the list. You can also save the template for future use.
6. Keep this list at your desk for easy access and continuously make a note of how often you use the various supplies and how long it takes to replace the item.
7. Order your office supplies as required to maintain your essential inventory. Review and update the office supply list every three months or so.

Whether you are running a new start-up or a medium-sized company, chances are you are spending quite a bit of money on office supplies and are searching for ways to save money. From inventory monitoring to buying in bulk, there are some easy and practical ways to reduce office supply expenses.