While QuickBooks Online’s inventory management is popular among product-based businesses, it has some limitations, such as the lack of last-in-first-out (LIFO) inventory costing method and limited multi-warehouse management features. This is where integrating QuickBooks with a third-party inventory platform like Fishbowl or Acctivate becomes beneficial.
In this article, we will discuss the benefits of inventory integration QuickBooks Online, what features can be activated with the integration, and how these enhanced features can benefit your business.
The Limitations of QuickBooks Online’s Inventory Management
- Lack of LIFO Costing: QuickBooks does not support the LIFO inventory costing method. This can be a problem for businesses that operate in specific industries or face fluctuating inventory costs. For instance, manufacturers use the LIFO costing method, as it allows them to reflect higher costs for recently purchased inventory, resulting in more accurate cost of goods sold calculations and improved profitability analysis.
- Multi-Warehouse Support: QuickBooks Online’s inventory management is primarily designed for single-location businesses. If your business operates multiple warehouses or distribution centers, QuickBooks stock tracking and fulfillment capabilities may fall short.
- Limited Order Management: QuickBooks Online lacks advanced functionalities, such as backorder management, partial shipments, and comprehensive order tracking. This can be a serious issue for businesses that heavily rely on order management processes, such as wholesale distributors that receive orders from multiple customers and online retailers dealing with a large volume of orders.
Benefits of Inventory Management Integration with QuickBooks Online
- Advanced Inventory Tracking: Integration with an inventory management system like Fishbowl and Acctivate enhances QuickBooks’ inventory tracking capabilities. Businesses can leverage features such as serial number tracking, batch tracking, and barcoding to achieve granular visibility into individual items. This ensures accurate inventory counts, reduces discrepancies, and improves inventory accuracy.
- Costing Method Flexibility: By integrating a dedicated inventory management system, businesses gain access to a wider range of costing methods beyond QuickBook’s limitations. They can implement specific costing methods like LIFO, First-In-First-Out (FIFO), or weighted average cost, enabling more accurate valuation of inventory and cost of goods sold calculations.
- Real-time Inventory Sync: Any updates made to inventory levels, sales orders, or stock adjustments are immediately reflected in QuickBooks. Real-time syncing eliminates manual data entry, reduces errors, and provides up-to-date inventory information for accurate financial reporting.
- Efficient Order Management: Businesses can efficiently handle complex order scenarios, such as backorders, partial shipments, and order tracking. The combined solution streamlines order processing, reduces errors, and enhances customer satisfaction through improved fulfillment.
- Advanced Reporting and Analytics: Additionally, you can gain access to comprehensive inventory reports, sales trends analysis, and actionable insights for optimizing your inventory management strategies. Customizable reports and analytics dashboards provide a deeper understanding of inventory performance, enabling data-driven decision-making.
Integrating QuickBooks with a Third-Party Inventory Management Software
From your QuickBooks Online account, click on Apps on the left menu bar and then select the inventory management software you wish to use from the app center. QuickBooks Online integrates with leading inventory management software like Fishbowl, Acctivate, Katana, and HandiFox.
Connecting QuickBooks to Fishbowl Online
For instance, if you wish to integrate QuickBooks with Fishbowl, simply type Fishbowl in the search bar and locate the Fishbowl Online app. Follow the on-screen prompts to connect Fishbowl and QuickBooks and get started. Note that you need to have a paid subscription with FishBolw in order to integrate it with QuickBooks Online.
If you can’t locate the app on the QuickBooks App Center or you don’t have the time for setup and integration, we can do it for you!
Ready to set up QuickBooks Online inventory management integration?
Whether you’re planning to use Fishbowl, Acctivate, or HandiFox, we can help you set up your account and integrate it with QuickBooks Online. From connecting your QuickBooks account with the inventory management system to configuring the necessary settings, we take care of all the technical aspects. Additionally, we offer free consultations to understand your unique business requirements and recommend the best integration solution tailored to your needs.