Abstract: An automated liquid inventory monitoring and inventory reconciliation system. The system uses a liquid densitometer to precisely measure the density of liquid being dispensed. This allows the system to account for the significant temperature-induced volume variations existing in common liquids such as gasoline. In the preferred embodiments, a fuel inventory processor tracks the quantity of fuel loaded into the tank and the quantity of fuel dispensed to maintain an ongoing computation of the quantity of fuel that should be present in the tank. An accurate tank depth measurement device is also employed. The processor compares the tank depth measurement to the computed quantity of fuel in the tank and uses the values to create an updated tank strapping chart.