QuickBooks Online tracking limitations
QuickBooks is great for streamlining financial management processes. However, when it comes to comprehensive inventory tracking, particularly for perishable items, you may encounter certain limitations if not using third-party integrations. Let’s go over some of these in more detail.
Inventory tracking in QuickBooks
QuickBooks Online doesn’t have the tools for multilocation inventory tracking or for tracking the manufacturing costs of your different inventory types.
QuickBooks Inventory is broken down into three types:
QuickBooks Online inventory tracking features could be fine for small retailers. However, manufacturers need a system that can help them with raw material inventory management and track the conversion of those raw materials into finished goods.
It might be okay at first, but once your business starts to grow and your order volume increases, you need to find a platform that can help you centralize and integrate your:
- Order entry
- Contact management
Inability to track unshipped orders
The lack of advanced inventory management features needed for QuickBooks lot tracking as a manufacturer has already been mentioned, but the feature gaps also extend to sale order management.
That means without an alternative method of tracking or using a spreadsheet alongside QuickBooks Online, you’re going to struggle to understand if products have been shipped to customers or if they’re still in your inventory.
Using a 3rd party integration for lot tracking in QuickBooks is going to help you easily locate your products. Other companies have tried to use QuickBooks online for tracking their open orders, but the system isn’t a robust solution for managing your supply chain.
No multilocation support
QuickBooks Online only supports one inventory location and is unable to track inventory across different sites.
There is a workaround to this: you can monitor inventory at different locations by “splitting” items and assigning them to the locations you want them stored.
However, the issue is that it’s a complicated workaround to maintain and becomes unmanageable when your business starts to expand. Plus, having a system that’s difficult to understand will only serve to become a hindrance in the event you need to perform a product recall.
Doesn’t support manufacturing
Manufacturing industries require different features when it comes to inventory management. Besides lot tracking, manufacturers also need:
QuickBooks Online is designed for accounting
The primary function of QuickBooks Online is to give its users general accounting software.
Luckily, QuickBooks has an Appstore, so you can use their software for your bookkeeping needs and integrate any apps to give you the extra functions that you require.