Yes, it's certainly possible to use Microsoft Excel to track inventory. Advanced Excel users can create robust inventory-tracking spreadsheets that use automatic calculations, conditional formatting, and pivot tables to mimic many of dedicated inventory software's tracking and reporting features.nnBut you should keep in mind that if you're not an advanced Excel user, it can be tough to create spreadsheets that get the job done. If you use Excel, you should also remember that the process will still have a lot of manual data entry.