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Contents:<\/b><\/h3><\/p>\n\t
1. Benefits of inventory tracking<\/a><\/p>\n\t 2. Inventory management with QuickBooks Online<\/a><\/p>\n\t 3. What types of items does QuickBooks Online help to track?<\/a><\/p>\n 4. Advantages and limitations of QuickBooks Online inventory tracking<\/a><\/p>\n\t 5. How to set up QuickBooks Online inventory tracking?<\/a><\/p>\n\t 6. Inventory management with QuickBooks Desktop<\/a><\/p>\n\n\n\n <\/p>\n\n\n\n An inventory tracking system<\/a> allows you to make informed decisions and navigate the ever-changing market with confidence, make timely changes to your inventory, thus avoiding the misery of stockouts and excesses. It\u2019s crucially important for businesses selling physical goods for a number of reasons. <\/p>\n\n\n\n Let\u2019s see the key benefits inventory tracking software provides:<\/p>\n\n\n\n Knowing exactly what you have in stock helps avoid stockouts, when you run out of popular items which are in high demand. This not only leads to lost sales but also frustrates customers and potentially damages your brand reputation. <\/p>\n\n\n\n Overstocking might not be bad for customers but it leads to increased storage costs and the risk of item spoilage or obsolescence. Tracking inventory can help you optimize your ordering. Thus, you only stock what you need, saving money and space.<\/p>\n\n\n\n Keeping tabs on inventory location and its status (damaged, reserved) allows for faster order fulfillment and more efficient warehouse operations, which saves time and reduces labor costs for your business.<\/p>\n\n\n\n Having accurate inventory data on hand provides valuable insights into such things as item demand, sales trends, and seasonality. <\/strong>This information helps you make informed decisions about pricing, promotions, purchasing, and production planning.<\/p>\n\n\n\n Effective inventory tracking systems can help identify discrepancies between the actual stock levels and recorded data, which might reveal potential losses due to accidental loss (shrinkage) or theft.<\/p>\n\n\n\n Consistent communication with suppliers depends on the accuracy of your inventory needs forecasting. Minimization of last-minute orders or cancellations will ultimately increase communication efficiency and strengthen your partnership.<\/p>\n\n\n\n When chosen wisely, inventory tracking software brings all these benefits\u00a0 to satisfy your business needs. As some features of inventory tracking software<\/a> might be important for a small business and unrequired by a medium-sized or a large company.\u00a0<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n When it comes to QuickBooks inventory tracking<\/a>, it has to be mentioned right away that you have access to inventory features only with QuickBooks Online Plus and Advanced. In other cases, you\u2019ll have to upgrade your QuickBooks plan to start tracking your inventory. Let\u2019s focus first on QuickBooks Online Inventory Management.<\/p>\n\n\n\n QuickBooks Online Inventory Management has everything necessary for managing your inventory, including getting alerts for restock time and insights on what you sell and buy. Let\u2019s take a closer look at the features QuickBooks Online Inventory Management provides or, in other words, what you can do with QuickBooks Inventory software:<\/p>\n\n\n\n QuickBooks stock inventory management software auto-updates your inventory with stock coming in and going out, which allows you to see what\u2019s selling and what you need to order.<\/p>\n\n\n\n Values of your stock automatically adjust during the day, same way as your balance sheet.<\/p>\n\n\n\n QuickBooks Online Inventory Management helps keep track of your orders from each supplier, sending you low stock alerts when it\u2019s time to reorder inventory. When inventory order arrives, QuickBooks converts the purchase order (PO) into an account to ensure you pay your suppliers on time.<\/p>\n\n\n\n QuickBooks Inventory feature allows you to organize your products with images, categories, and prices, which makes it easy to find products and services. You can also sort items according to whether they\u2019re taxed or not.<\/p>\n\n\n\n You can auto-calculate the cost of each product sold by using first-in, first-out or the FIFO method<\/a>.<\/p>\n\n\n\n QuickBooks Online Inventory Management helps you run reports of best selling items, total sales, and total taxes being a source of valuable business insights.<\/p>\n\n\n\n There are four types of items that you can track with QuickBooks Online Inventory Management:<\/p>\n\n\n\n The items you buy and\/or sell and track quantities such as packing materials or finished goods like jewelry.<\/p>\n\n\n\n The items you buy and\/or sell but don’t track quantities of such as nuts and bolts for installation projects or finished pieces of furniture and hardware.<\/p>\n\n\n\n The services you provide to your customers such as landscaping or tax preparation.<\/p>\n\n\n\n Bundles are a collection of products and\/or services that you offer together for a certain price. <\/p>\n\n\n\n Let\u2019s start with the advantages of QuickBooks Online inventory tracking:<\/p>\n\n\n\n QuickBooks Online is designed for user-friendly navigation, making inventory tracking accessible even for non-accounting professionals with intuitive interfaces and guided setup processes. It tracks inventory at all stages, making it easier for your team to understand your operations and fulfill orders quickly.<\/p>\n\n\n\n Automatic inventory adjustments through sales, purchases, and transfers in QuickBooks Online allows you to have an accurate picture of your stock levels.<\/p>\n\n\n\n With QuickBooks Online, you can keep track of your inventory, sales orders, production, finances, and customers – all in one software.<\/p>\n\n\n\n While QuickBooks Online is excellent for financial management, it has some limitations when it comes to manufacturing management:<\/p>\n\n\n\n With QuickBooks Online Inventory Management, you have to dedicate a separate subscription per location. In other words, it doesn\u2019t support multiple location inventory tracking. QuickBooks Online subscription for each location would have to order and sell its inventory and can\u2019t move inventory from one location to the other. You can also track the inventory of multiple warehouses in one QuickBooks Online subscription and prepare a separate list of items from different locations.<\/p>\n\n\n\n This is a disadvantage mainly for manufacturing business owners who track their products for quality control standards with serial codes. This feature is available with QuickBooks Desktop though.<\/p>\n\n\n\n Assembly orders tracking feature is important for businesses that outsource materials and parts and then assemble them to create a final product.<\/p>\n\n\n\n Advantages and limitations of <\/strong>QuickBooks Online inventory tracking will help you determine whether the software is the right fit for your business.<\/p>\n\n\n\n While working with QuickBooks as inventory tracking and accounting software, you have to manage a lot of financial data from various sources. That\u2019s where accounting integrations like Synder<\/a> come on stage. Synder Sync provides an automatic sync of your business\u2019s or your clients\u2019 transactions from multiple platforms with QuickBooks Online or Desktop version reducing manual bookkeeping and accounting processes and making your reconciliation process seamless. <\/p>\n\n\n\n You can also set up inventory tracking and COGS in Synder making your accounting system a single source of truth for inventory. Additionally, Synder is able to categorize your income by product income accounts specified in your books. Being a reliable bridge between your accounting system and sales sources, Synder brings added functionality to the table to fill the gaps of your accounting system. <\/p>\n\n\n\n To get to know Synder better, if you choose to go for a game changer for your business, you can always get a free demo<\/a> or go for a Synder free trial<\/a> to see wonders it works with your own eyes.<\/p>\n\n\n\n QuickBooks gives their step-by-step guides that make the procedure transparent. Setting up QuickBooks <\/strong>Online inventory tracking consists of 5 steps. <\/p>\n\n\n\n Before adding your inventory, you have to enable inventory tracking system by following the instructions below:<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Now you\u2019re all set to add your inventory items as well as other products and services you sell into QuickBooks. The steps to add inventory, non-inventory, and service items are a bit different, let\u2019s see the example with adding inventory items.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n After setting up all the inventory products, QuickBooks Online starts tracking them for you in two possible ways:<\/p>\n\n\n\n\n\t
Benefits of inventory tracking<\/strong><\/span><\/h2>\n\n\n\n
1. Customer satisfaction<\/strong><\/h3>\n\n\n\n
2. Saving money on storage and waste<\/strong><\/h3>\n\n\n\n
3. Improved operational efficiency<\/strong><\/h3>\n\n\n\n
4. Informed decision making<\/strong><\/h3>\n\n\n\n
5. Shrinkage and theft reduction<\/strong><\/h3>\n\n\n\n
6. Improved supplier relationships<\/strong><\/h3>\n\n\n\n
![\"Benefits](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/01\/benefits-of-inventory-tracking.png\"){kind=tracking}
<\/figure><\/div>\n\n\n\nInventory management with QuickBooks Online<\/strong><\/span><\/h2>\n\n\n\n
1) View your quantities on hand as stock<\/strong><\/h3>\n\n\n\n
2) Track stock value in real-time<\/strong><\/h3>\n\n\n\n
3) Stay on top of orders<\/strong><\/h3>\n\n\n\n
4) Organize your inventory <\/strong><\/h3>\n\n\n\n
5) Auto-calculate product cost <\/strong><\/h3>\n\n\n\n
6) Run reports<\/strong><\/h3>\n\n\n\n
What types of items does QuickBooks Online help to track?<\/strong><\/span><\/h2>\n\n\n\n
Inventory items<\/strong><\/span><\/h3>\n\n\n\n
Non-inventory items<\/strong><\/span><\/h3>\n\n\n\n
Services<\/strong><\/span><\/h3>\n\n\n\n
Bundles<\/strong><\/span><\/h3>\n\n\n\n
Advantages and limitations of QuickBooks Online inventory tracking<\/strong><\/span><\/h2>\n\n\n\n
Easy to use<\/strong><\/h3>\n\n\n\n
Real-time updates<\/strong><\/h3>\n\n\n\n
Streamlined accounting and inventory tracking in one package<\/strong><\/h3>\n\n\n\n
No support for multiple locations<\/strong><\/h3>\n\n\n\n
No serial number tracking feature<\/strong><\/h3>\n\n\n\n
Doesn\u2019t track assembly orders<\/strong><\/h3>\n\n\n\n
How to set up QuickBooks Online inventory tracking?<\/strong><\/span><\/h2>\n\n\n\n
Step 1: Turn on inventory tracking<\/strong><\/h3>\n\n\n\n
![\"QuickBooks](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/01\/qb-dashboard-products-and-services-1024x435.png\")
<\/figure><\/div>\n\n\n\nStep 2: Add your inventory products<\/strong><\/h3>\n\n\n\n
![\"QuickBooks:](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/01\/quickbooks-product-service-information.png\")
<\/figure><\/div>\n\n\n\nStep 3: Keep track of what sells<\/strong><\/h3>\n\n\n\n