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

Whether you’re looking to learn more about how to classify your expenses related to office supplies or 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 or business equipment is a functional, tangible property that facilitates office production. Unlike office supplies, equipment is considered more permanent and long-lasting. Standard office equipment includes machinery, office furniture, vehicles, computers, electronic devices, etc. More advanced office equipment includes fingerprint sensors, eye scanners, high-tech cameras and video conferencing equipment. Unlike office supplies, office equipment is usually recorded as an asset and expensed over an extended period rather than immediately. Equipment does not include land or buildings owned by a business.

2. How do you 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, tracking spending by using these simple rules of basic office supply management is crucial.

Rule 1: Have a Manager

One of the most important rules for good inventory management is a manager. This manager must 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 occasionally to ensure they are not forgotten. Lastly, make sure to purge obsolete items regularly.

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. Walk around the office and note the various office supplies you have. Check areas such as supply cabinets, breakrooms 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 in MS Word or Excel. Save this template.

4. Separate into groups for 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. Note how often you use the various supplies and how long it takes to replace an item.

7. Order your office supplies as required to maintain your essential inventory. Review and update the office supply list periodically.

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. Some easy and practical ways to reduce office supply expenses exist, from inventory monitoring to buying in bulk.