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Creating a Version Number for Records in a Custom App

I need to find a way to create an auto-incrementing version number for records created in my custom app.  I've created a product management database where product information is entered and modified over time.  When the record is intially entered, I'd like the version field to show "1".  Then if the record gets edited, I want the record to get saved with a new version number (2,3,4,etc). 


Can I do this using a custom field?


One way might be to use a custom field that starts at one and create a Workflow and a Field Update to increment the value by one whenever the record is edited and saved.