Inventory is probably one of the biggest challenges for QuickBooks Users. Even for businesses that think they are small and not complicated, the processes involved for tracking purchases, stocking inventory, and maintaining accurate quantities on hand can be a nightmare. Both QuickBooks Online (QBO) and QuickBooks Desktop have inventory capabilities; however, either additional functionality or more efficient processes are needed that neither one can provide alone.

QuickBooks Online

QBO is great for simple inventory control with the added bonus of using the FIFO method for inventory valuation. Currently, this is some of what is missing:

• Sales or Work Orders. These transactions are necessary for managing open customer orders, picking and packing, and tracking backorders.

• Item Receipts. These transactions are needed to add to the quantity on hand for items received, which may be before a bill is even received.

• Multiple warehouses and other locations such as vans or trucks that hold stock.

• Bin or Lot Tracking with Serial Numbers and Expiration Dates.

• Assembly items.

• Barcoding.

I do love the fact that QBO is web-based and that there is a mobile app that can perform a lot of functions out in the field, such as sales receipts with credit card payments. And there are quite a number of 3rd party apps that I have tested that are full on inventory solutions. The problem with almost of all of them, in my opinion, is that they don’t use the inventory in QBO.

HandiFox

HandiFox is the exception. This app uses the inventory in QuickBooks and syncs transactions bidirectionally with it, ensuring accurate financials and correct inventory valuation. Also, the design interface is user-friendly and easy to navigate in both the web-based and mobile app versions. Plus, there is so much more it can do than what I have listed above. And it works with both QBO and QuickBooks Desktop.

QuickBooks Enterprise with Advanced Inventory

QuickBooks Enterprise (QBES) has the most functionality of all QuickBooks products and alone can handle the most complex inventory processes. While there is no mobile app, there is a mobile warehouse app when Advanced Inventory is turned on. This requires the Platinum subscription, which is the most expensive tier of the required subscription. And it is somewhat limited currently as to what it can do. Here is a comparison with what HandiFox can do: