{"id":19017,"date":"2022-12-15T11:28:25","date_gmt":"2022-12-15T16:28:25","guid":{"rendered":"https:\/\/www.method.me\/?p=19017"},"modified":"2025-12-13T05:21:36","modified_gmt":"2025-12-13T10:21:36","slug":"does-quickbooks-track-inventory","status":"publish","type":"post","link":"https:\/\/www.method.me\/blog\/does-quickbooks-track-inventory\/","title":{"rendered":"Does QuickBooks track inventory?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Tracking your inventory levels plays a vital role in selling. When you do it right, you avoid underselling your stock or running out faster than you anticipate.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you use <a href=\"https:\/\/www.method.me\/quickbooks-crm\/\">QuickBooks<\/a> for your accounting needs, you might have wondered about the following questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Does QuickBooks track inventory?<\/li>\n\n\n\n<li class=\"\">How to do inventory in QuickBooks?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Fortunately, this blog will teach you all you need to know if you want to start leveraging QuickBooks as inventory management software.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group m-section-thin m-bluebanner is-layout-flow wp-block-group-is-layout-flow\"><div class=\"wp-block-group__inner-container\">\n<h3 class=\"wp-block-heading has-text-align-center simpletoc-hidden\" id=\"h-sick-of-manually-adding-invoices-into-quickbooks\">Sick of manually adding invoices into QuickBooks?<\/h3>\n\n\n\n<div class=\"wp-block-buttons m-justified-center is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button m-button cta-content qb1d\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.method.me\/quickbooks-crm\/?utm_campaign=2024ctas&amp;utm_term=cta-banner1d\">Let Method automate it<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-quickbooks-keep-track-of-inventory\">Does QuickBooks keep track of inventory?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, you can use QuickBooks to <a href=\"https:\/\/www.method.me\/blog\/quickbooks-online-track-inventory\">keep track of your inventory<\/a>. Its inventory management features allow you to efficiently manage the tracking, purchasing, and sale of inventory items. This includes counting and tracking multiple quantities with serial numbers or bar codes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">QuickBooks&#8217; inventory management solution helps you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Easily track available inventory on hand.<\/li>\n\n\n\n<li class=\"\">Recalculate prices when including discounts or taxes.<\/li>\n\n\n\n<li class=\"\">Update various reports to reflect new stock levels in real-time.<\/li>\n\n\n\n<li class=\"\">Ensure that users never miss a sale due to low inventory levels.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In short, whether it&#8217;s stocks of raw materials or finished products ready for retail sale, QuickBooks has decent tools to aid businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But does QuickBooks track inventory the way manufacturing companies need it to? Let&#8217;s find out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-quickbooks-inventory-tracking\">QuickBooks inventory tracking<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are many ways QuickBooks Online simplifies inventory tracking.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On top of keeping an accurate inventory account, QuickBooks also provides detailed insights into what sells and what doesn&#8217;t, helping you make better-informed business decisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These reports empower you to pinpoint best-selling items with customers and stock more. You can easily adjust daily operations and balance sheets through a real-time inventory sync and, more importantly, improve cash flow.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-do-inventory-on-quickbooks\">How to do inventory on QuickBooks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Managing your inventory lists on QuickBooks Online is simple \u2013 here\u2019s what you need to know.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-manage-your-inventory-in-quickbooks\">How to manage your inventory in QuickBooks<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before dabbling in QuickBooks\u2019 inventory management systems, you should determine your inventory method.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A few standard inventory methods are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Just-in-Time Management:<\/strong> JIT management only replenishes stock quantities when a customer orders it. This lean production manufacturing strategy frees up cash flow and prevents overstocking.<\/li>\n\n\n\n<li class=\"\"><strong>ABC Analysis: <\/strong>This strategy lets businesses prioritize workloads and reduce stock-out chances. ABC analysis divides stock into three categories:\n<ul class=\"wp-block-list\">\n<li class=\"\">Category A contains high-value goods in small quantities.&nbsp;<\/li>\n\n\n\n<li class=\"\">Category B has lower-value items in higher quantities.&nbsp;<\/li>\n\n\n\n<li class=\"\">Category C includes the lowest-value goods in the highest amounts.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li class=\"\"><strong>Materials Requirement Planning: <\/strong>This inventory management strategy plans inventory needs to meet expected customer demands. It lets businesses estimate the labor and materials required to satisfy the supply chain.<\/li>\n\n\n\n<li class=\"\"><strong>Economic Order Quantity:<\/strong> EOQ involves ordering the optimal inventory quantity with the lowest overhead costs. Businesses must calculate the amount of inventory required per batch to stay frugal and precise.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-tracking-inventory-basics\">Tracking inventory basics<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once you&#8217;ve chosen your inventory method, you\u2019ll want to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Identify poorly-selling items and consider leaving these out of your inventory operations.<\/li>\n\n\n\n<li class=\"\">Audit your inventory regularly.<\/li>\n\n\n\n<li class=\"\">Create inventory reports that put your stock into perspective and pinpoint improvement areas.<\/li>\n\n\n\n<li class=\"\">Use cloud-based inventory management software to keep the appropriate point persons in the loop.<\/li>\n\n\n\n<li class=\"\">Perform quality checks to ensure your products are safe and sellable.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-accessing-the-dashboard\"><strong>Accessing the dashboard<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You can access all the information you need through the QuickBooks central inventory dashboard.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There, you can automatically update any inventory item and adjust discrepancies. Through QuickBooks&#8217; cycle count feature, you can track inventory without shutting your warehouse down.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-add-inventory-in-quickbooks\">How to add inventory in QuickBooks<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Easily <a href=\"https:\/\/www.method.me\/blog\/quickbooks-online-and-inventory\">add inventory items<\/a> to QuickBooks by activating the inventory tracker.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Learn how to add inventory in QuickBooks in a few simple steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"\">Navigate to &#8220;Account and settings&#8221; and click on the &#8220;Sales&#8221; tab.<\/li>\n\n\n\n<li class=\"\">Go to &#8220;Products and services&#8221; and select &#8220;Edit&#8221;.<\/li>\n\n\n\n<li class=\"\">Toggle &#8220;Show product\/service column&#8221; under &#8220;Sales forms&#8221;, enabling quantity and price\/rate tracking.&nbsp;<\/li>\n\n\n\n<li class=\"\">Click &#8220;Track inventory quantity on hand&#8221; and save your settings.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">There are two ways to add stocks: as part of your inventory or as non-inventory products. The latter might include products you don&#8217;t sell, like screws, nuts, and bolts involved in the installation process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you sell gift bags, for instance, consider creating bundles to avoid having to track parts individually.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-manual-vs-automated-inventory-tracking-in-quickbooks\">Manual vs automated inventory tracking in QuickBooks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Nowadays, most businesses prefer to use inventory and accounting software to automate their processes. But does QuickBooks track inventory better than a manual process would?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below are a few insights to help you determine what tracking procedure suits your business best.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-of-manual-tracking\">Benefits of manual tracking<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses that use software like Excel manually track inventory on a budget. This process is better suited for smaller companies with limited inventory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, manual upkeep is prone to human error and takes too much time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-benefits-of-automated-tracking\">Benefits of automated tracking<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Thanks to advanced inventory software, brands with sizable inventory can automate processes and reduce human error.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A reliable inventory management tool simplifies stocktaking by informing users of low stock and what items sell best.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-print-inventory-labels-from-quickbooks\">How to print inventory labels from QuickBooks<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To print inventory labels with <a href=\"https:\/\/www.method.me\/blog\/advanced-inventory-quickbooks-desktop\">QuickBooks Desktop<\/a>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"\">Navigate to the &#8220;File&#8221; tab, select &#8220;Tools&#8221; and &#8220;Print designer&#8221;.<\/li>\n\n\n\n<li class=\"\">Click &#8220;Inventory tags&#8221; under the &#8220;Document type&#8221; menu. You can choose to design your tag or go with a templated option.<\/li>\n\n\n\n<li class=\"\">Then, click &#8220;Options&#8221; and copy &#8220;Selected&#8221;. Remove the sample barcode and add a data field or a field group.<\/li>\n\n\n\n<li class=\"\">Select &#8220;BARCODE: UPC&#8221; and move around tag elements as needed.<\/li>\n\n\n\n<li class=\"\">Save your template, and select the &#8220;Yes&#8221; option if you&#8217;d like to make it a default.<\/li>\n<\/ol>\n\n\n\n<div class=\"wp-block-group m-section-thin m-bluebanner is-layout-flow wp-block-group-is-layout-flow\"><div class=\"wp-block-group__inner-container\">\n<h3 class=\"wp-block-heading has-text-align-center simpletoc-hidden\" id=\"h-method-crm-lets-you-run-your-business-your-way\">Method CRM lets you run your business, your way.<\/h3>\n\n\n\n<div class=\"wp-block-buttons m-justified-center is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button m-button cta-content crm-cta3\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/grow.method.me\/request-demo\/?utm_campaign=2024ctas&amp;utm_term=cta-banner-mofu3\">Watch it in action<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-limitations-of-quickbooks-inventory-tracking\">Limitations of QuickBooks inventory tracking<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Many businesses turn to QuickBooks Enterprise for inventory management.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Does QuickBooks track inventory? Yes. But despite its key features, QuickBooks lacks functionalities as an inventory management app.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below are a few of these limitations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>QuickBooks Online is not exclusive to inventory management.<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While it boasts inventory and accounting features, QuickBooks Online was not designed exclusively for inventory management. Instead, QuickBooks Online functions primarily as accounting software.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Human error is not impossible.<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Despite its automation capabilities, QuickBooks becomes prone to errors when integrating with other inventory apps.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Accurate inventory reports are limited.<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You can&#8217;t retrieve comprehensive reports, especially if you store inventory data on a different app. These limitations hurt your future forecasts and inventory count.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>It&#8217;s not as scalable as you may think.<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Even with QuickBooks Enterprise, users get only 1GB of storage. As your business grows, QuickBooks cannot keep up with all your data and processes.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>It lacks industry-specific features.<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you need additional inventory features for manufacturing and distribution, you&#8217;re out of luck with QuickBooks. Depending on your industry, you&#8217;ll likely rely on QuickBooks&#8217; third-party integrations.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-method-helps-with-quickbooks-inventory-tracking-nbsp\">How Method helps with QuickBooks inventory tracking <\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite its limitations, QuickBooks is an excellent way to track inventory for smaller businesses on a budget. It doesn&#8217;t require additional software development and easily links to other advanced accounting tools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Make the most of QuickBooks by integrating it with Method, a full-suite CRM with must-have inventory features for manufacturing-specific businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.method.me\/\">Method <\/a>allows users to connect sales and accounting data, and automate managing orders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This video will teach you about Method&#8217;s workflow automation.<\/p>\n\n\n\n<div style=\"padding:56.25% 0 0 0;position:relative;\"><iframe data-src=\"https:\/\/player.vimeo.com\/video\/913433287?badge=0&amp;autopause=0&amp;player_id=0&amp;app_id=58479\" frameborder=\"0\" allow=\"autoplay; fullscreen; picture-in-picture\" style=\"position:absolute;top:0;left:0;width:100%;height:100%;\" title=\"Win more business with a QuickBooks CRM\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/div><script src=\"https:\/\/player.vimeo.com\/api\/player.js\"><\/script>\n\n\n\n<h2 id=\"key-takeaways\" class=\"wp-block-heading\">Key takeaways<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While QuickBooks is an excellent tool for inventory management, it poses some limitations you may have to remedy using other third-party apps.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By now, you should have the answer to the question &#8220;does QuickBooks track inventory?&#8221;. But if you still intend to use QuickBooks for inventory tracking, keep these takeaways in mind.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">QuickBooks provides helpful tools for tracking stock levels, but you&#8217;ll need to audit your inventory processes regularly. You can track individual items manually or automatically to avoid human error. You can even print inventory labels with QuickBooks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if your business requires extended inventory tracking functionalities, you&#8217;ll be better off with a robust integration.<\/p>\n\n\n\n<h2 id=\"quickbooks-inventory-faqs\" class=\"wp-block-heading\">QuickBooks inventory FAQs<\/h2>\n\n\n\n<h3 id=\"what-is-the-best-way-to-track-inventory\" class=\"wp-block-heading\">What is the best way to track inventory?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The best way to track inventory is with a full-suite inventory management system. With robust software, you receive real-time stock alerts, allowing you to replenish your merchandise as quickly as possible.&nbsp;<\/p>\n\n\n\n<h3 id=\"what-inventory-method-does-quickbooks-use\" class=\"wp-block-heading\">What inventory method does QuickBooks use?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">QuickBooks Commerce uses the first-in, first-out (FIFO) method, which sells newly acquired goods first. FIFO follows the natural flow of your inventory. Specific jurisdictions sometimes require it, but FIFO is relatively easy to implement.<\/p>\n\n\n\n<h3 id=\"how-does-quickbooks-track-inventory-and-cogs\" class=\"wp-block-heading\">How does QuickBooks track inventory and COGS?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">QuickBooks automatically adds your cost of goods (COGS) to your chart of accounts. Use QuickBooks&#8217; transaction journal report to reflect COGS transactions in real-time each time you sell an inventory item. This feature automatically debits COGS accounts.&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Start your <a href=\"https:\/\/www.method.me\/\">Method<\/a> CRM <a href=\"https:\/\/signup.method.me\/methodcrm?Pricing&amp;_ga=2.167140734.139841131.1661483472-820620278.1661483472\">free trial<\/a> today!<\/p>\n\n\n\n<p class=\"footnote wp-block-paragraph\"><em>Image credit: Cottonbro via <\/em><a href=\"https:\/\/www.pexels.com\/photo\/delivery-man-writing-on-top-of-a-carton-box-6169192\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Pexels<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Automating your inventory tracking process is easy using QuickBooks. Learn  how in this blog post.<\/p>\n","protected":false},"author":44,"featured_media":19035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[228],"tags":[],"class_list":["post-19017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Does QuickBooks Track Inventory? 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