Manufacturing Inventory Management: 9 Strategies That Save Time and Money
Inventory Management Manufacturing Inventory Management: 9 Strategies That Save Time and Money...
QuickBooks inventory management helps small and mid-sized businesses stay on top of stock levels without needing complicated tools. If you’re already using QuickBooks for accounting, you’re halfway there — the platform includes simple inventory features that save time and reduce manual work.
From tracking what you sell to restocking what’s running low, QuickBooks gives you a clear view of your inventory. But it’s important to know where its limits are. This guide walks you through what QuickBooks can and can’t do, shows how to get more from it, and helps you decide when it’s time to connect an add-on like Fishbowl or another tool.
QuickBooks inventory management gives you the tools to handle everyday stock tasks without extra software. It’s built to help you keep track of products, stay organized, and make better decisions with clear data.
Here’s what you can expect:
As you buy or sell items, QuickBooks updates your inventory automatically. When a customer returns a product or you receive a new shipment, the system adjusts the stock level for you — no manual entry needed.
You can create purchase orders inside QuickBooks and track incoming items. Set reorder points so the system warns you when stock is running low. That way, you’re ready to restock before products run out.
QuickBooks supports different cost tracking methods — FIFO, LIFO, and Average Cost. Choose the one that matches how your business values stock.
When you make a sale, QuickBooks updates your inventory, creates an invoice, and adjusts your accounts. This reduces errors and saves time on daily tasks.
QuickBooks includes useful reports like Inventory Valuation Summary, Sales by Product, and Stock Status by Item. These help you track costs, monitor trends, and understand how your inventory affects your bottom line.
QuickBooks handles the basics well enough for many businesses to manage their stock efficiently without needing to switch tools.
QuickBooks inventory management covers the basics, but it’s not built for advanced inventory needs. If your business is growing or you’re managing inventory across multiple locations, you’ll start to notice some gaps.
Here’s what QuickBooks doesn’t do:
QuickBooks doesn’t support barcode scanning out of the box. That means no fast product lookups or quick inventory counts without manual entry.
You can’t manage multiple stock locations or track what’s stored where. This makes it more challenging to stay organized if you have multiple warehouses or stockrooms.
QuickBooks doesn’t let you track products by lot, batch, or serial number. This is a problem if you need traceability for quality control or expiration tracking.
QuickBooks can’t track raw materials, work orders, or finished goods. If you build products, you’ll need extra tools to manage that process.
These limits don’t make QuickBooks bad — they just mean it’s built for simple inventory tasks. If you need more, pairing it with the right inventory add-on can fill the gaps and keep everything running smoothly.
QuickBooks does a lot, but sometimes you need more. That’s where integrations come in. These inventory tools plug into QuickBooks to give you extra features like barcode scanning, multi-location tracking, and manufacturing support.
Here are some of the top options to consider:
Best for: Manufacturers, wholesalers, and retailers
Why it works: Fishbowl fills the gaps in QuickBooks with barcode scanning, lot tracking, and multi-warehouse support. It also adds tools for managing raw materials and finished goods.
Keep in mind: Setup takes time, and the cost is higher, but you get powerful features in return.
Best for: Small manufacturers
Why it works: Katana helps track raw materials, automate production, and syncs easily with QuickBooks. Great if you build products and want to manage orders from start to finish.
Keep in mind: It’s more advanced than basic inventory tools, so expect a learning curve.
Best for: Businesses selling on multiple channels
Why it works: Cin7 supports barcode scanning, real-time stock sync, and automates order flow across QuickBooks, Shopify, Amazon, and more.
Keep in mind: It’s packed with features, which can feel like too much if you only need the basics.
Best for: Small businesses on a budget
Why it works: Zoho adds real-time tracking, order automation, and low stock alerts — all at a lower cost. It’s easy to set up and works well with QuickBooks Online.
Keep in mind: It doesn’t offer advanced warehouse or manufacturing tools.
Each of these tools helps you do more without leaving QuickBooks. Whether you need better tracking, faster fulfillment, or more control, there’s an option that fits. Choose the one that matches your workflow and business size.
QuickBooks makes it easy to manage inventory once you know where to start. Whether you’re using QuickBooks Online or Desktop, these steps help you set up your items, track stock, and keep everything updated.
Here’s how to get started:
For QuickBooks Online:
Go to Settings > Account and Settings > Sales, then switch on inventory tracking.
Go to Products and Services (Online) or Item List (Desktop).
Click New, select Inventory, and fill in the details:
Click Save and Close.
Use purchase orders to order stock. QuickBooks tracks what you ordered, from whom, and when it’s expected.
Once goods arrive, convert the PO into a bill to update inventory automatically.
When you make a sale, QuickBooks adjusts your stock and creates the invoice.
If items are returned or damaged, record the return or write-off to keep counts accurate.
Avoid running out of stock by setting reorder points. QuickBooks alerts you when stock drops too low, so you know when to restock.
Use built-in reports like:
These give you a clear picture of what’s selling, what’s in stock, and what it’s all worth.
With these steps, you can handle day-to-day inventory tasks right inside QuickBooks — no extra tools needed.
QuickBooks works well for simple inventory tasks. But as your business grows, you might hit limits that slow you down. That’s when it makes sense to add an inventory system that works with QuickBooks.
Here are signs it’s time to level up:
QuickBooks doesn’t track inventory across multiple warehouses. If you store products in different places, you need better location tracking.
If you’re updating inventory by hand or juggling spreadsheets, it’s time to automate. Inventory systems reduce errors and save hours.
QuickBooks can’t scan barcodes or track items by lot or serial number. If you need to trace products, you’ll need a tool that supports it.
QuickBooks doesn’t support work orders or bill of materials (BOM). If you’re a manufacturer, an add-on can help track parts and production.
More sales, more products, more complexity — all good problems. But they need better tools. A connected inventory system helps you keep up without switching from QuickBooks.
Adding an inventory system gives you more control without losing the benefits of QuickBooks. You don’t have to change platforms — just add what you need to stay efficient.
Not every inventory system works the same, or with every version of QuickBooks. Picking the right one depends on what your business needs now and where you’re headed next.
Here’s what to look for:
Some add-ons only support QuickBooks Online. Others are built for Desktop or Enterprise. Before you decide, check that the tool connects smoothly with your version.
Think about what your business does every day. Do you need barcode scanning? Multi-location tracking? Lot numbers? Pick a tool that handles the exact tasks you deal with.
The best inventory system won’t help if it’s hard to learn. Look for a clean interface, simple setup, and good support. Your team should be able to get started without needing extra training.
If you’re adding new products or sales channels, you’ll want a tool that grows with you. Some systems also support ecommerce, wholesale, or manufacturing workflows.
Costs vary by features and plan. Some tools charge monthly, others by user count. Compare what each system offers and make sure the price lines up with your business stage.
Choosing the right add-on means fewer headaches down the line. Pick a system that fits your current setup, adds what QuickBooks is missing, and can grow as your needs change.
QuickBooks inventory management gives small and growing businesses the tools to track stock, manage orders, and keep numbers accurate — all in one place. It handles the basics well, and for many, that’s enough to stay on top of day-to-day inventory.
But when your business starts moving faster, selling more, or managing products across multiple locations, QuickBooks alone might not be enough. That’s where an inventory system comes in. Tools like Fishbowl, Katana, or Zoho help you fill the gaps without switching platforms.
The best part? You don’t have to leave QuickBooks behind. You just connect the features you need, and keep everything working together.
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