Small Business Inventory Management is the process of tracking, controlling and monitoring stock levels in order to ensure businesses have adequate inventory on hand and do not incur unnecessary costs. It includes ordering, warehousing, distributing, tracking and reordering stock. With effective inventory management, businesses can maintain optimal inventory levels that reduce costs and generate more profits from sales. By automating various components of their inventory management process with the aid of software programs, small businesses are able to save time and money, as well as minimize risks associated with manual inventory management processes.