Babies/toddlers fly through clothing sizes so quickly that I wanted a system in place for storing my son's clothes and keeping track of what we have. I initially got the idea to create a clothing inventory from this post, and began making a detailed list in a notebook. When I made the list, however, I just wrote down a description of each item (red long sleeved shirt, cargo khaki pants) without categorizing, so the list was not very practical. I wanted something I could keep in my purse for yard sale and thrift shop finds so I could buy things we actually needed.
I then checked out this book (Thanks for the tip, Meredith) and read about another way to inventory clothes by listing general garment types (pants, shirts, etc.) and putting an X on that line for each item of that type: 3 jackets, 3 X's.
Now I have both systems in place and am loving it so far. I have the more detailed descriptions in my notebook, and then I created a little index card file to keep in my purse. Now I can see at a glance how many shirts and pants I have in each size, and I also made categories for pajamas, winterwear, etc. It takes awhile to create, but is easy to update and has been great for knowing what to look for. That works for me! Check out other great ideas here.