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What is Inventory? (And Why It Matters) for Handmade Businesses

Inventory is one of the most misunderstood parts of running a handmade business — and it directly affects your expenses, pricing, and taxes. In this post, we’ll break down what inventory actually is, why you can’t deduct materials when you buy them, and which makers truly need to track it. No accounting jargon, no overwhelm — just clear explanations that finally make inventory make sense.
Originally written & published in 2020 – updated in 2026 for clarity.

How To Track Finished Items Inventory for Makers-Without a Spreadsheet Meltdown

Finished items inventory isn’t just what’s sitting on your shelves—it’s money tied up in your handmade business. In this post, you’ll learn how to track finished items inventory using a simple spreadsheet system, what actually needs tracking, and how to avoid the spreadsheet overwhelm that trips up so many makers.