Integration spotlight: QuickBooks Online inventory management add-on

Small business owners know all too well that effective time management is key to running a business successfully. However, with so many moving parts, that’s often easier said than done.

But what if we told you that you can streamline two of the most important aspects of managing your e-commerce business? By integrating QuickBooks Commerce as an inventory management add-on to your current QuickBooks Online subscription, you can quickly and easily manage accounting and inventory tracking in one dashboard.

This integration can help you save time, reduce errors, and streamline several processes, allowing your business to work more efficiently and allowing you to make decisions equipped with the most up-to-date data. Learn more about how easy it is to set up and whether QuickBooks Commerce is a good fit for your business’s needs. Use the links below to navigate the article.

• How to set up a QuickBooks Commerce—QuickBooks Online inventory management add-on
• Is QuickBooks Commerce a good fit for your business?
• Integrate inventory management and accounting today

How does QuickBooks Commerce work as an inventory management add-on?

QuickBooks Online is a cloud-based accounting and bookkeeping software that allows small business owners to manage payroll, create invoices, reconcile bank transactions, and more.

QuickBooks Commerce is an inventory management add-on that integrates with QuickBooks Online to automate accounting processes and manage inventory and multiple e-commerce channels. Relevant financial and accounting data from QuickBooks Commerce also pushes to QuickBooks Online, eliminating the need for manual data entry.

So while your sales, operations, and warehousing team can manage inventory and orders, your accounts and financing team can manage accounting, finance, cash flow, and so on from the same place. That means everyone in the team has access to the same synchronized accounting and order information—saving time and reducing errors.

QuickBooks Commerce has impressive inventory and order management capabilities. As such, your small business benefits from advanced inventory management strategies, with minimal effort on your end. Some of the key benefits of integrating your inventory management software with QuickBooks Online include increased functionality, such as the ability to:

• Create sales invoices: When a sales order is created in QuickBooks Commerce, the total amount is immediately recorded in QuickBooks Online as an invoice for payment.
• Create purchase orders : When you hit a reorder point and a purchase order is created in QuickBooks Commerce, the total amount automatically appears in QuickBooks Online as a bill. This makes reordering and accounting for that expense easy.
• Track inventory: Changes in stock levels in QuickBooks Commerce are updated in real-time to a journal in QuickBooks Online. This includes shipments of sales orders, received purchase orders, and adjustments to inventory items such as inventory classifications.
• Multi-currency pricing: QuickBooks Commerce’s multi-currency pricing automatically converts amounts to the base currency of your QuickBooks Online account.
• Tax bundling : QuickBooks Commerce will predefine bundles of taxes—local sub taxes, sales taxes, compound taxes—in various percentages or combined. This information is then synced with QuickBooks through every sales order and purchase order.

How to set up a QuickBooks Commerce–QuickBooks Online inventory management add-on

As long as you have a QuickBooks Online subscription, you can add on QuickBooks Commerce. Here’s how:

1.Connect QuickBooks Online to QuickBooks Commerce

Add QuickBooks Commerce to your current QuickBooks Online subscription.

2. Create default accounts in QuickBooks

Before connecting QuickBooks Online to QuickBooks Commerce, you will need to make sure certain accounts exist with QuickBooks. These include:

• Income: This will be your Sales account.
• Bank or credit card: This will be your Payments account. Depending on how you wish to receive payment, select Bank or Credit Card. If you wish to receive payment in cash, choose Bank > Cash on Hand. If you decide to set up your Credit Card instead of a Bank, set your currency to match your default currency in QuickBooks Commerce.
• Expenses: This will be your Purchases account.
• Cost of Goods Sold: This will be your Cost of Goods Sold account.
• Other Assets: This will be your Stock on Hand account.

3. Create your sales tax

• If you haven’t already set up your sales tax in QuickBooks Online, click on the Sales Tax tab on the left side of your QuickBooks account. Then click New Tax to create a new Tax Record.

4. Set up your default accounts

• Set up Sales with the drop-down option labeled Income or Sales in QuickBooks Online.
• Set up Payments with the account for either your Bank or Credit Card.
• Set up Purchases with your Purchases Account from the drop-down options.
• Set up Stock on Hand to inventory assets.
• Set up Cost of Goods Sold with the account for cost of goods sold.
• Set up Stock Purchases with the account for purchases.

5. Update payment types

Decide what payment methods you want to accept and add payment methods to your QuickBooks Commerce account. You can easily add as many payment methods as you need.

6. Set up tax types

Make sure all your tax requirements are set up in QuickBooks Online.

• Setting up QuickBooks Commerce with your QuickBooks Online accounting software takes just a few clicks. If you’re already using QuickBooks Online, find out if QuickBooks Commerce is a good fit for your business.

Is QuickBooks Commerce a good fit for your business?

QuickBooks Commerce is a powerful inventory management system that is designed for multi-channel businesses. QuickBooks Commerce may be a good fit for your business if you:

• Operate in the U.S.
• Have product inventory
• Sell primarily on online platforms
• Sell across multiple sales channels like Amazon, Shopify, and eBay
• Sell finished products
• Ship via Amazon FBA or direct-to-customer

Integrate inventory management and accounting today

Streamline your business operations and enjoy the convenience of having your inventory management and accounting work together with QuickBooks Online integration. Thanks to interconnectivity and advanced inventory management features, you can cut down on time spent and errors that occur from updating information from inventory reports into your accounting system. This means better inventory control, forecasting, inventory analysis, financial management, and supply chain management.

With QuickBooks inventory management and accounting all on the same dashboard, you get all of the functionality you need in the most convenient way possible. Get started today and see the difference it can make.