You’ve already heard of QuickBooks — one of the most popular accounting software solutions for small to mid-sized businesses. With a range of features like automated invoicing, payroll processing, and financial reporting, this user-friendly Intuit product has helped countless business owners streamline their accounting processes.
What you might not know is that QuickBooks is a big help with basic inventory management. And companies with more complex logistical needs can save thousands of dollars by integrating QuickBooks with their outside inventory management system.
From tracking stock levels to managing orders, here’s how to leverage QuickBooks to enhance efficiency, minimize errors, and drive business growth.
How QuickBooks approaches inventory management
You can use QuickBooks Desktop, QuickBooks Online, and QuickBooks Enterprise for their impressive inventory management capabilities. Here’s a quick look at what these powerful accounting solutions can do:
- Inventory tracking: The system automatically updates stock levels as you make sales and receive new inventory. You can monitor inventory quantities and costs in real time.
- Inventory costing methods: You don’t have to change your current systems to accommodate QuickBooks. It supports different inventory costing methods, including first-in, first-out (FIFO), last-in, first-out (LIFO), and average cost.
- Streamlined purchasing: QuickBooks makes it easy to create purchase orders, track incoming stock or merchandise, and manage your vendor relationships.
- Sales and invoicing: When you make a sale, QuickBooks automatically updates inventory levels and generates invoices to limit manual data entry. This reduces human error and helps you fulfill orders faster.
- Reporting and analytics: You can generate reports on inventory valuation, stock levels, sales performance, and profitability by product — all of which help you make more informed inventory management decisions.
With all those capabilities, you might wonder what QuickBooks can’t do to help with inventory management. While it’s a helpful tool, QuickBooks offers features that mainly focus on tracking inventory levels and costs. You won’t receive advanced warehouse management features like barcode scanning, lot tracking, or efficient picking and packing functionalities.
To make up for these limitations, QuickBooks offers integration with several third-party apps and software that extend its capabilities, including Fishbowl. Fishbowl covers QuickBooks’ gaps, and when you use them together, you have all the tools necessary for smooth inventory management. We’ll explain more about why Fishbowl’s your best option after we delve into QuickBooks’ inventory management features and some of the other inventory solutions that integrate with QuickBooks.
6 benefits of using QuickBooks for inventory management
If you’re using QuickBooks as a standalone inventory management solution, here’s a deeper look at the perks to expect.
1. Streamlined tracking
One of QuickBooks’ primary benefits is maintaining accurate records. The system automatically updates inventory levels when you record sales, returns, and new shipments. For example, if a customer returns a product, QuickBooks automatically adds the item back into your inventory. This type of real-time tracking ensures you always know how much stock is on hand, reducing the risk of stockouts or overstocks.
2. Order management
QuickBooks simplifies order management by helping you create and track purchase orders. You can also set reorder points to get stock alerts when it’s time to replenish inventory, making it easier to manage levels efficiently and avoid running out of popular items.
3. Financial insights
With QuickBooks, you can analyze inventory costs, profitability, and sales trends — data that helps you make decisions about what items to keep in stock and when. These valuable financial insights come from detailed QuickBooks reports like the Inventory Valuation Summary, Sales by Item Summary, and Inventory Stock Status by Item, which all provide a helpful overview of your inventory’s financial impact.
4. Integration capabilities
Integrating QuickBooks with an inventory management system like Fishbowl allows for seamless data synchronization. These tools work together to ensure that your accounting and inventory data are current and accurate, eliminating the need for manual data entry and reducing the likelihood of errors.
5. Automation
QuickBooks automates routine tasks like sending invoices and recording expenses. For example, when you record a sale, QuickBooks automatically generates the invoice, updates accounts receivable, and deducts the sold items from your inventory. This saves time, letting you and your team focus on more strategic aspects of your business.
6. Scalability
As your business grows, QuickBooks can scale with it. QuickBooks Enterprise offers advanced features for larger businesses, including enhanced reporting capabilities and the ability to manage multiple locations. And it’s easy to switch between products to access the features you need without changing platforms or learning a new interface.
Plus, Fishbowl integrates with QuickBooks Enterprise, giving you access to additional inventory tools not found in QuickBooks as you scale beyond the accounting software’s functionality.
How to use QuickBooks for inventory management
Here are five inventory management tasks that QuickBooks simplifies.
1. Set up inventory items
Add your inventory items in QuickBooks. Include details like the item name, description, and sales price. The system uses this information to track inventory levels and generate reports.
2. Create purchase orders
When you need to restock inventory, you can create purchase orders that detail what you’re ordering, the shipping details, and information of the vendor you’re ordering from. This helps QuickBooks update records when you receive the new goods.
3. Record sales and adjust inventory
Record sales, returns, and damaged goods to maintain an accurate inventory count.
4. Set reorder points
When you run out of goods customers want to buy, you risk losing sales. Avoid this type of costly stockout by setting automatic reorder points. QuickBooks notifies you when it’s time to restock to ensure optimal inventory levels.
5. Generate reports
QuickBooks’ reporting features make it easy to analyze inventory data and use it to improve your processes.
QuickBooks integrations for advanced inventory management
If your business is just getting off the ground, QuickBooks may be all you need for basic inventory management. But as your needs become more complex, you’ll benefit from a more advanced solution — like Fishbowl’s warehouse and inventory management software.
Fishbowl is designed to be QuickBooks’ perfect partner. Together, they allow for more accounting methods, variable pricing, and part tracking, just to name a few of their powerful tools.
Here’s what else to expect from this inventory-specific software:
- Barcode scanning: Automate data entry and improve accuracy with barcode scanning. Assigning barcodes to every SKU leads to stronger inventory tracking — even across different locations.
- Lot tracking: QuickBooks and Fishbowl let you analyze stock by lot numbers for quality control and traceability thanks to dozens of report options.
- Multiple-warehouse management: Easily and accurately manage inventory across multiple locations. You’ll always know which warehouse has what, so customers are never left without the items they ordered.
Manufacturing: QuickBooks and Fishbowl go beyond what you actually have in stock. You can also track raw materials, works in progress (WIPs), and finished goods to streamline manufacturing operations. - Advanced reporting: Receive in-depth insights into inventory trends and performance to help you make decisions that drive growth.
10 Inventory systems that integrate with QuickBooks
The right software can automate key inventory management processes, helping you improve order fulfillment, and avoid costly mistakes. If you’re looking for an inventory system that works with QuickBooks, here are 10 solid options.
1. Fishbowl
Fishbowl is one of the most popular inventory systems for QuickBooks, especially among manufacturers, wholesalers, and retailers. It adds advanced inventory tracking features that QuickBooks alone doesn’t offer.
Key features:
- Supports barcode scanning for faster inventory counts
- Tracks stock across multiple locations
- Automates purchase orders and sends stock alerts for low stock
- Syncs with QuickBooks Pro, QuickBooks Enterprise, and QuickBooks Online
Pros:
- Seamlessly integrates with QuickBooks software
- Also integrates with other popular software like Shopify, HubSpot, and eBay
- Automates order fulfillment and restocking
- Supports serial numbers, lot numbers, expiration dates, revision levels, and custom tracking methods
Cons:
- Takes time to set up
- Is more expensive than some alternatives
2. Shopify Connector by Intuit
If you run a Shopify store, this tool helps you track inventory in real time and keeps your inventory accounts updated in QuickBooks Online — without manual input.
Key features:
- Automatically updates inventory counts
- Sends low stock alerts to prevent overselling
- Streamlines order management
Pros:
- Built by Intuit, so it works smoothly with QuickBooks inventory
- Supports multiple Shopify stores
- Saves time by automating updates
Cons:
- Only works for Shopify stores
- Only integrates with QuickBooks Online
- Lacks advanced warehouse management features
3. eBay Connector by Intuit
Selling on eBay? This integration keeps your sales, payments, and inventory tracking synced with QuickBooks Online to avoid manual data entry.
Key features:
- Syncs eBay sales and inventory automatically
- Updates inventory counts to prevent overselling
- Helps manage inventory accounts with fewer errors
Pros:
- Saves time by eliminating manual data entry
- Helps prevent low stock issues
Cons:
- Is only useful for eBay sellers
- Only integrates with QuickBooks Online
- Lacks advanced inventory control tools
4. Katana Cloud Inventory
Katana is great for manufacturers who need to manage raw materials, track items, and streamline order fulfillment without the headache of trying to do it all manually.
Key features:
- Tracks raw materials and finished products
- Automates purchase orders and reorder points
- Supports barcode scanning for accurate inventory counts
Pros:
- Works best for manufacturers to track items from start to finish
- Syncs with QuickBooks Online and ecommerce platforms
- Provides real-time insights into inventory assets
Cons:
- Is more complex than basic inventory software
- Isn’t ideal for businesses that don’t manufacture products
5. Uncat
Ever struggled with missing inventory details in QuickBooks Desktop? Uncat helps you clean things up by allowing team members to update missing product data.
Key features:
- Identifies missing inventory details
- Lets employees update inventory info easily
- Syncs with QuickBooks software for more accurate records
Pros:
- Helps maintain clean inventory records
- Saves time on manual updates
- Simple and easy to use
Cons:
- Isn’t a full inventory management tool
- Doesn’t help with order fulfillment
6. BigCommerce Connector by Intuit
If you sell on BigCommerce, this integration keeps your store’s sales, payments, and inventory tracking connected to QuickBooks Online — so you’re always working with accurate numbers.
Key features:
- Syncs inventory, sales, and payments automatically
- Helps prevent overselling with low stock alerts
- Automates reorder points
Pros:
- Works smoothly with QuickBooks inventory
- Saves time by automating updates
- Ideal for ecommerce businesses
Cons:
- Is only useful for BigCommerce sellers
- Only integrates with QuickBooks Online
- Lacks advanced warehouse management features
7. Cin7
Cin7 is a powerful inventory system for businesses selling across multiple channels, offering strong order management and inventory control features.
Key features:
- Automates inventory tracking and order fulfillment
- Uses barcode scanning for accurate inventory counts
- Supports multi-channel selling
Pros:
- Works with QuickBooks Online, Amazon, Shopify, and more
- Automates reorder points
- Great for businesses with complex inventory workflows
Cons:
- More expensive than some alternatives
- Takes time to set up
8. Precoro
Precoro is a great fit for businesses that need better control over purchase orders and spending while keeping everything in sync with QuickBooks inventory.
Key features:
- Tracks purchase orders and supplier data
- Helps manage expenses and inventory accounts
- Offers real-time spending insights
Pros:
- Ideal for businesses that frequently place orders
- Improves inventory control and financial tracking
- Works with QuickBooks Online
Cons:
- Isn’t a full inventory management tool
- Is better suited for procurement-heavy businesses
9. Zoho Inventory
Zoho is an easy-to-use and affordable inventory software designed for small businesses looking to automate order management and track inventory without breaking the bank.
Key features:
- Supports multi-channel inventory tracking
- Sends stock alerts when items hit low stock levels
- Syncs with QuickBooks Online, Amazon, and eBay
Pros:
- Is budget-friendly
- Is easy to use for small businesses
- Works with multiple sales channels
Cons:
- Lacks advanced warehouse management
- Experiences occasional sync issues
10. Odoo
Odoo is a highly customizable inventory system that includes tools for inventory control, order fulfillment, and barcode scanning.
Key features:
- Tracks inventory assets, lot numbers, and serial numbers
- Supports multiple locations and warehouse management
- Automates purchase orders and reorder points
Pros:
- Scales as your business grows
- Works with QuickBooks Advanced and QuickBooks Desktop
- Is highly customizable
Cons:
- Requires setup and customization
- Could be overkill for smaller businesses
How to choose the best inventory management integration for QuickBooks
The best inventory system for QuickBooks — whether you’re using QuickBooks Online, QuickBooks Desktop, or QuickBooks Enterprise — depends on your business needs. Here are a few key factors to consider when making your decision.
Compatibility with your QuickBooks version
Not all inventory systems for QuickBooks work with every version of QuickBooks. Some integrations are built specifically for QuickBooks Online, while others are optimized for QuickBooks Desktop or QuickBooks Enterprise. Before choosing an inventory management tool, make sure it’s fully compatible with your QuickBooks software.
Features that match your business needs
Think about the specific features you need. If you run a retail or ecommerce business, you might want barcode scanning, real-time sync, and order fulfillment automation. If you work in manufacturing, you may require lot numbers, serial numbers, and advanced inventory control features. Identify any must-have features before deciding on a tool.
Ease of use and setup
A powerful inventory management system isn’t helpful if it’s too complicated to use. Consider how easy it is to set up, integrate with QuickBooks, and train your team. A system with a user-friendly interface and clear workflow automation can save time and reduce frustration.
Scalability and cost
Your business will grow, and so will your inventory needs. Choose an inventory software solution that can scale with your business — whether that means handling stock across multiple locations, more complex order management, or additional sales channels. Compare pricing plans and make sure the cost aligns with your budget, too.
Fishbowl: The inventory software solution that pairs seamlessly with QuickBooks
Whether you’re new to inventory management or looking to improve your current processes, integrating QuickBooks with a dedicated inventory system offers the tools and insights you need to succeed. And it’s easy to do with Fishbowl — the all-in-one inventory management solution designed to help you control stock, warehouse operations, and manufacturing workflows.
If you’re ready to take control of your stock and gain end-to-end visibility over your operations, schedule a demo of Fishbowl today.
Frequently asked questions
What is an inventory management system?
An inventory management system helps businesses track stock, sales, and orders in real time. It prevents overstocking and stockouts by providing visibility into inventory levels and often includes features like barcode scanning, automated reordering, and multi-location tracking.
How much does QuickBooks’ inventory feature cost?
QuickBooks offers inventory tracking in certain plans:
- QuickBooks Online: Available in Plus ($99/month) and Advanced ($235/month).
- QuickBooks Desktop: Enterprise includes advanced inventory tools, but pricing varies based on users and features.
Check QuickBooks’ pricing page for the latest rates.
Can QuickBooks handle inventory for manufacturers?
QuickBooks has basic inventory features, but manufacturers often need more. QuickBooks Enterprise includes advanced tracking, but integrations like Fishbowl add features like multilevel bill of materials (BOM), work orders, and production tracking.
Do I need an ERP, or is an inventory system like Fishbowl enough?
If you don’t need all the features in an ERP, why pay for them? It’s generally better to conserve your resources and stay with the accounting solution you’re already familiar with rather than learning a whole new system. For many small and mid-sized businesses, integrating QuickBooks with Fishbowl or a similar inventory system is a cost-effective alternative to a full ERP.
Why integrate an inventory system with QuickBooks?
- Better inventory control: Track stock, automate reorders, and avoid running low on goods.
- Sync with accounting: Keep inventory and financials aligned.
- Scalability: Manage more inventory as your business grows.
- Improved order fulfillment: Ensure smooth processing from purchase orders to delivery.
How do I create an inventory item in QuickBooks?
To add an inventory item in QuickBooks:
- Turn on inventory tracking in Settings > Account and Settings > Sales (for QuickBooks Online).
- Go to Products & Services in the Sales tab.
- Click New, then select Inventory.
- Enter item details:
- Name and SKU
- Category
- Initial quantity on hand
- Reorder point (to get low stock alerts)
- Sales price/rate
- Cost
- Inventory asset account
- Click Save and Close.
This ensures QuickBooks can track inventory, update stock levels in real time, and sync with your accounting.
How do I categorize inventory in QuickBooks?
Organizing your inventory in QuickBooks helps with inventory control and makes it easier to track items. Here’s how you can categorize inventory:
Create categories:
- Go to Lists and select Manage Category.
- Click Add New Category.
- Enter a category name.
- (Optional) If creating a subcategory, check Is a Subcategory of and select the parent category.
- Add a description (optional) and click OK.
Assign categories to inventory items:
- Go to Lists and select Item List.
- Choose the item you want to categorize.
- Click Item > Edit Item.
- Select Category and choose an existing one, or click Add New.
- (Optional) Add a description and save your changes.
This helps you track inventory, streamline order management, and stay on top of inventory counts in QuickBooks.
