For new and growing manufacturing businesses, QuickBooks is often the go-to software for accounting and financial management needs.
However, as manufacturers reach certain growth milestones, they start requiring more specialized software to manage key aspects of their operations, including:
- Inventory management.
- Sales.
- Customer support.
- Human resources — and more.
At the same time, leveraging QuickBooks data to drive other business functions — while feeding information back — helps keep your finances aligned with growth. This reduces the risk of:
- Information gaps.
- Manual data entry errors.
- Inefficient bottlenecks.
That’s why it’s beneficial to explore how you can extend QuickBooks for other parts of your manufacturing business through add-ons and apps. Read on for more details.
Can you use QuickBooks for manufacturing?
While QuickBooks offers some inventory management tools like tracking raw materials, managing customer communications, and pricing inventory, it has limitations for manufacturers. It’s primarily designed to manage the financial side of your business.
However, QuickBooks isn’t an optimal solution on its own when it comes to more product-oriented tasks like:
- Work-in-process (WIP) inventory tracking.
- Bills of materials.
- Production planning and scheduling.
- Managing complex operations.
QuickBooks Online’s manufacturing capabilities
QuickBooks Online provides a solid foundation for financial management, but its manufacturing-specific features are limited. While it offers basic inventory management capabilities like tracking raw materials and finished goods, growing businesses with complex processes may find QuickBooks Online insufficient.
For example, QuickBooks Online can track individual component items but can’t convert these into finished items automatically. This requires manual reconciliation of component stock reductions and finished product stock increases. Additionally, QuickBooks Online may experience performance issues when handling large volumes of data as operations scale.
QuickBooks Enterprise’s manufacturing capabilities
QuickBooks Enterprise offers more industry-specific features for manufacturers compared to QuickBooks Online. These include:
- Deeper inventory management.
- Bill of materials cost tracking.
- Job costing.
- Multi-location support.
- Custom price levels for different customers.
QuickBooks Enterprise also provides pre-loaded reporting templates for better production line visibility, such as:
- Inventory Valuation Summary Report.
- Inventory Stock Status by Item Report.
- Assembly Shortage by Item Report.
While QuickBooks Enterprise offers more manufacturing-specific capabilities than QuickBooks Online, it still has limitations and a steeper learning curve. Its core strength remains in accounting and financial management rather than optimizing manufacturing processes.
How to get more out of QuickBooks for manufacturers
To maximize the value of QuickBooks for manufacturing businesses, consider integrating compatible third-party apps that support wider business processes. Two key areas to focus on are to:
Use a QuickBooks MRP
A QuickBooks material requirements planning (MRP) suite lets you oversee your entire manufacturing process, from inventory management to production management and warehousing. Unlike QuickBooks alone, an MRP is purpose-built for manufacturing tasks and can account for specific challenges you’ll face as you scale.
Add a QuickBooks CRM
A customer relationship management (CRM) system houses information on current and potential customers, supporting front office teams in driving sales and growth. The right CRM will integrate with your QuickBooks account, connecting financial data to help make informed decisions on pricing, market targeting, and sales process optimization.
Top QuickBooks add-ons for manufacturing
Katana MRP
Image credit: Katana
Katana is a popular manufacturing and inventory management software that integrates seamlessly with QuickBooks. It offers features like:
- Real-time inventory management.
- Production planning and scheduling.
- Purchasing and supplier management.
- Integrations with e-commerce platforms.
Pricing
Katana MRP offers three subscription options:
- Starter: $179 per month billed annually.
- Standard: $359 per month billed annually.
- Professional: $799 per month billed annually.
Method CRM
Method is a highly customizable CRM that works perfectly with QuickBooks for manufacturing businesses. Key features include:
- A two-way instant QuickBooks sync.
- 100% customizable workflows and automation.
- Out-of-the-box customer portal.
- Advanced reporting and analytics tools.
Pricing
Method:CRM offers three subscription plans:
- Contact Management: $25 per user per month.
- CRM Pro: $44 per user per month.
- CRM Enterprise: $74 per user per month.
Each plan offers varying functionalities and capabilities, depending on the stage your business is in and its unique needs. Method also offers a free trial with no credit card required.
Wrap-up: QuickBooks add-ons for manufacturing
For manufacturers requiring advanced functionalities that fall outside the scope of finance — such as production scheduling, detailed bills of materials, and comprehensive reporting — QuickBooks may not be enough.
To bridge these gaps, manufacturers can benefit significantly from integrating specialized add-ons like Katana MRP and Method CRM. Katana MRP enhances inventory tracking and production planning, while Method CRM facilitates customer relationship management and saves time with features like its two-way QuickBooks sync and customizable workflows.
As you explore your options, it’s essential to evaluate the specific needs of your manufacturing operations and consider how these add-ons can enhance them. When you leverage the right tools, you can build a software system that both saves time and cuts costs.
Extend the limits of QuickBooks. Try Method for free.
