Barcoding34

How to Set Up a Barcode Inventory System in 4 Simple Steps

Posted by Thomas WongLast Updated January 15th, 2026
— 10 minutes reading

Key Takeaways

  • Setting up a barcode inventory system consists of 4 easy steps: generating barcodes, labeling your inventory, utilizing scanners, and integrating software.
  • You can start the process by preparing an inventory list to associate each product with a unique barcode.
  • You can generate barcodes with a free online barcode generator or barcode font for internal purposes. However, for globally recognized barcodes, you’ll need to purchase GS1-registered barcodes.
  • Once your barcodes are generated, you’ll need to print them using a barcode printer and attach them to your inventory.
  • Barcode scanners have various options that range from affordable USB scanners to more advanced wireless smart scanners, depending on your specific needs. Even smartphones can double as barcode scanners.
  • Integrating inventory management software with barcode functionality is the best way to barcode inventory items and get the most out of your barcode inventory system.

Over the years, we’ve had countless small businesses ask about barcodes or, more specifically, how to set up a barcode inventory system. So, by popular demand, we’ve crafted this short tutorial to show you how to set up a barcode inventory system quickly and painlessly!

We tried to keep this article simple, but if you’re interested in a more in-depth look at how to start barcoding your small business, check out our Ultimate Barcoding Guide. It covers absolutely everything related to barcodes.

If you prefer video tutorials, you can find one below:

How To Set Up A Barcode System | inFlow Inventory software

But since you’re here, this post provides some extra detail about the steps from our video for setting up a barcode inventory system.

Step 1: Generate barcodes for your barcoding inventory system

Before you can start scanning products, you need to assign a unique barcode to each item in your inventory. That process starts with organizing your product data, then choosing how you’ll generate and manage your barcodes.

Prepare your inventory list

The first step is prepare an inventory list spreadsheet so that you can tie barcodes to specific products and start building your barcode inventory tracking system. This list serves as the foundation of your barcode system, since each barcode is tied to a specific item record.

If you haven’t prepared a spreadsheet, head over to our article about inventory lists. We walk you through what an inventory list is and how to create one. We’ve even included a free-to-download template to make your life easier. Our template is pretty barebones, but you can add any relevant information to your products, such as lot and serial numbers, for example.

A clean, well-structured inventory list will make the barcode setup process faster, more accurate, and much easier to maintain long-term.

As a quick final example, here’s what an inventory list spreadsheet could look like:

A graphic example of what an inventory list spreadsheet looks like.

Generate barcodes (using a generator or software)

Once your inventory list is ready, you can start generating barcodes. You can use a free online barcode generator to generate barcodes one at a time. However, there is a better option. Barcode inventory software can automatically generate barcodes for each product. If you have custom-built software for utilizing barcodes, you can also do more with your barcode inventory system. 

Internal vs. GS1 barcodes (for global use)

Generating your own barcodes, however, isn’t for everyone. If you need your barcodes to be recognized globally, you need GS1-registered barcodes. For those, you can visit our official inFlow GTIN Barcode Shop to purchase single barcodes for only $30 with no renewal fee. However, if you need more than ten barcodes, we recommend purchasing a company prefix directly from the GS1 website.

Choosing the right barcodes upfront will save you time, prevent relabeling later, and ensure your barcodes work wherever your products are sold.

Step 2: Print and apply barcode labels to your inventory

Now that you’ve got a spreadsheet of your products and corresponding barcodes, you’re one step closer to a complete barcode inventory system. Now it’s time to physically label your current inventory.

Labeling is often the most time-intensive part of the process, since every item (or storage unit) needs a label. For most businesses, this step takes several hours at a minimum, and sometimes a few days, depending on inventory size.

Choose a barcode label printer

To create your barcode labels, you’ll need a barcode label printer and software. We recommend the inFlow Portable Printer. It’s compact, wireless, and built for use in warehouses or on the go. This printer allows you to easily print labels directly from your phone, tablet, or computer, without being tied to a single workstation.

While you can get by with a standard office printer, a dedicated label printer produces scannable, durable labels much faster and more consistently, which makes a big difference when you’re labeling dozens or hundreds of items.

Design and print barcode labels

Before you start printing, you’ll want to decide what information appears on each label and how they’ll look. Understanding your company’s brand archetypes can significantly influence how you design your product labels, making them resonate more with your target audience.

There are options when it comes to the software you use to create your labels. You could opt for the “free”-ish option and just use Word, or Google Docs, or if you’re using inFlow we include a built-in label designer to make it easy for users to create custom labels. 

Our tip is to stay moderate when adding fields first. Stick to the basics like Item Name and Barcode, and see how that fits with a few test prints. Remember that you’ll still want to be able to read some of the information on the labels, so having fewer fields on each label means they’ll be easier to skim. 

Tips for labeling your inventory

Now it’s time for the most time-intensive part of the process. Slapping those labels on your physical inventory. Here’s some tips to help streamline the process.

  • Plan for time and help: As we’ve mentioned, labeling is usually the most labor-intensive step. If you have a large stockroom, assigning multiple people to print, place, and verify labels can dramatically reduce setup time.
  • Label consistently. Stick labels in the same place on every product or bin so your team never has to hunt for where to scan.
  • Test before committing. Print a small batch of labels first and confirm that the barcodes scan and function as intended.
  • Keep it going. Once your existing inventory is labeled, make barcode labeling part of your receiving process so every new item is tagged before it goes into storage.

Once you finish labeling everything you currently have, pat yourself on the back for a job well done. You’ve almost completed your inventory barcoding system. Just keep in mind it’s a good idea to keep the process going for any incoming products.

Quote: "Setting up a barcode system will require an investment of time, but the payoff is huge."

Step 3: Choose the right barcode scanners

Having barcodes on your products won’t do much good without a scanner to read them. Scanners come in all shapes and sizes, from small pen models to larger portable computing systems with built-in software. Today, you can even use the smartphone in your pocket to scan barcode labels. The barcode scanner you choose will depend on how often you scan and where you scan.

Using smartphones as barcode scanners

If you only scan occasionally, your smartphone may be enough to get started. With the right app, most modern phones can scan standard barcodes using their built-in camera. What’s great about this option is that it’s zero investment on your part. For very small teams or low-volume operations, smartphones can be a convenient entry point into barcode scanning.

However, phones aren’t built for repeated, high-speed scanning. As scan volumes increase, camera-based scanning becomes slower, more tiring for staff, and less reliable than purpose-built hardware.

Wired vs. wireless barcode scanners

For most businesses, we recommend buying a dedicated barcode scanner for your barcoding system. They can speed things up and save you a lot of time in the long run. Aside from being faster and more accurate, they’re also far more comfortable to use throughout the workday.

If you’re in the market for something affordable and reliable, you could pick up a wired USB scanner. These are an excellent option for anyone doing stationary barcode scanning, such as receiving desks, packing stations, or retail counters.

Wireless Bluetooth scanners offer more flexibility. They’re ideal if staff need to move between shelves, bins, or storage areas while scanning. Without cables, teams can work more freely and process inventory more efficiently across the floor.

Smart scanners for high-volume scanning

In busy warehouse or manufacturing environments, investing in a smart scanner is often the most efficient option. Smart scanners are great because you can download your barcode software directly onto the device, allowing staff to scan, receive, pick up, and adjust inventory from a single handheld unit. This reduces handoffs between devices, speeds up workflows, and minimizes errors.

For operations that require speed, mobility, and all-day scanning, smart scanners deliver the highest level of efficiency and control.

A picture of the inFlow Smart Scanner, a great addition to any barcoding inventory system.

Step 4: Use inventory management software to tie your barcode system together

Scanners and label printers are important pieces of the barcode inventory system, but they don’t do much on their own. If you’re using barcodes for inventory management, you’ll need excellent inventory software to tie your barcode system together.

This is where inFlow fits in. It’s designed to support fully barcoded businesses, whether you’re starting from scratch or upgrading an existing process.

Generate and manage barcodes with software

With inventory software like inFlow, you can build your product list directly in the system or import it from an existing spreadsheet. Once your items are in place, you can generate unique barcodes for each product in just a few clicks.

From there, the software becomes your central source of truth for your barcode data. Each scan can update inventory levels, show product data, and much more.

Streamline label printing and scanning with software

When it’s time to physically label your product, inFlow can kickstart the process. It does this by showing your current stock and printing your labels straight to a printer. We also simplify printing labels straight from purchase orders, so you can add incoming stock to your barcode inventory system as it arrives.

Once barcodes are in place, scanning replaces manual data entry across your workflows. Items can be scanned onto sales orders, stock transfers, and work orders. A barcode system for small business inventory management can drastically reduce manual errors in these processes.

An image of two Cassandras showing how a barcode system is faster than typing

Final thoughts

Setting up a barcode inventory system takes some upfront effort, but the payoff is long-term accuracy, faster workflows, and better visibility across your business. From generating barcodes to labeling inventory and choosing the right scanners and software, each step builds toward a system that saves time and reduces costly mistakes.

We hope this post has helped you learn all the significant components of implementing a barcode inventory system. If you’d like to get started, inFlow can help!

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