Back to Basics

My plan for this blog has gone awry. I originally intended to write about the decisions I was making as I built my hand dyed fabric business. I also wanted to post info about the dyeing process and, of course, show what the results have been.
While I've written some about dyeing, the business decisions have not been discussed much. And, after pinching a nerve in my back in October, the entire blog has suffered.
So, in typical new year's fashion, I'm making a new plan: get back to basics and write about it.
The business issue I've been working on over the past two weeks is inventory. Need it for tax purposes, really need it so I know what I have, how much, where it is being sold, how much has been sold, what colors and fabrics are the most popular.
I started keeping a list on a spreadsheet but that just isn't cutting it. In a previous career I taught Lotus Notes, a database, to end users, designers and admins. I think a database is the way to go.
Do you to track your inventory? If so, how do you do it? If not, why?