Why You Should Use QuickBooks for Inventory Management

All retail and ecommerce business owners know that inventory is the single most important asset that will make or break your operation. Sellers must walk a fine line between overstock and stockouts, and keeping an eye on inventory becomes more and more difficult to do manually the larger your business grows. That’s why you need to have a system for inventory management that is easy to scale and doesn’t require adding extra manpower. 

Fortunately for QuickBooks users, you can use your existing accounting software to also manage your inventory. Most businesses don’t need to buy expensive third party inventory management solutions if they have tools that allow them to harness the full capacity available in QuickBooks Enterprise. 

Third Party Tools Add Cost, Complexity & Risk

The market is full of expensive third party tools that integrate with QuickBooks to deliver inventory and warehouse management solutions. There are some software that become the system of record for inventory, but you don’t need them because QuickBooks Desktop Enterprise already has inventory capabilities. This does mean that if you’re using QuickBooks Online, it’s time to upgrade. Then, all you’ll really need is integration software that makes it easier to use QuickBooks for inventory. It is much more efficient to maximize your current setup and utilize its features.

Third party tools in general require a heavy upfront investment of time, are cumbersome and slow, have expensive support, and have lengthy training and adoption times, which result in lost productivity. 

You’re Already Using QuickBooks 

QuickBooks has captured roughly two-thirds of the market share for accounting software, and it is the top choice for ecommerce sellers. You’re probably already using it, which means accessing its inventory management features—or even upgrading to QuickBooks Enterprise—is far easier than integrating a brand new solution. 

Many sellers aren’t aware that they can manage the entire fulfillment process within QuickBooks, from order placement to shipping out with a self-created shipping label. Status reports show you which items you need to reorder and simply click once to auto-create all outstanding purchase orders, and you can automatically create POS when parts inventory runs low. And speaking of automatic, QuickBooks will automatically update your inventory across locations. Products can also be tracked down to the bin within your warehouse or to the service truck where it’s in transit.

Because QuickBooks specializes in accounting, you’ll get insights into how the costs associated with your inventory affect your business’s financial health. Factor in freight, duties, insurance, and other expenses and consolidate vendor information to find the most cost-effective option for you. 

When QuickBooks Inventory Features Are No Longer Enough

QuickBooks offers excellent built-in inventory management for small and mid-sized businesses, but as operations grow more complex, you may reach a point where its native tools start to limit efficiency. If your team spends hours reconciling stock across multiple sales channels or struggles to maintain accurate counts between warehouses, it is a sign that your current setup is stretched thin.

Common signs that you have outgrown QuickBooks inventory include:

• Managing multiple online stores or marketplaces like Shopify, Amazon, and eBay

• Needing real-time stock updates across all sales channels

• Handling multiple warehouses or bin locations with unique SKUs

• Experiencing frequent overselling or backorders

• Lacking visibility into item-level profitability or forecasting

At this stage, pairing QuickBooks with a connected automation platform, such as Webgility, becomes essential. It centralizes product, order, and inventory data so you can eliminate manual entry, sync stock in real time, and maintain accurate accounting records automatically. The result is more control, fewer errors, and faster fulfillment even as your business scales.

Webgility Includes Inventory Management Software

The #1 accounting automation software for ecommerce sellers also automates inventory management. With a team of QuickBooks-certified staff, Webgility is also a certified QuickBooks partner, part of the Intuit Dev Council, and is a QuickBooks ProAdvisor Pick. Additionally, G2 Crowd classifies Webgility as a leader in inventory control. 

Integrate QuickBooks & your ecommerce stores with Webgility to prevent out-of-stocks, which is particularly important to maintain good standing with Amazon. You can update quantities & prices automatically and make inventory updates in either QuickBooks or your store with a two-way sync. Eliminate manual data entry, duplicate data entry & human error, and adjust inventory automatically as returns & cancellations. 

Webgility simply expands upon the already robust features of QuickBooks. For many ecommerce companies, QuickBooks offers much more than they actually need. Adding another application introduces unnecessary cost, complexity, and risk. Consolidating inventory & accounting within QuickBooks makes managing your business easier, reduces the chances of errors and allows deeper insights to improve your operations.

FAQs

Why should businesses use QuickBooks for inventory management?

Because it already includes built-in inventory features, saving money and reducing complexity compared to third-party tools

What risks come with third-party inventory management tools?

They add costs, require lengthy training, slow processes, and increase risks of errors and lost productivity

Can QuickBooks handle the entire fulfillment process?

Yes, QuickBooks manages orders, shipping, purchase orders, auto-reorders, and inventory updates across locations automatically

How does Webgility improve QuickBooks inventory management?

Webgility automates syncing between ecommerce stores and QuickBooks, reducing manual entry, preventing stockouts, and ensuring accurate two-way inventory updates

What financial insights does QuickBooks provide for inventory?

It factors in costs like freight, duties, and insurance, giving sellers a complete view of inventory impact on financial health