Although QuickBooks Online is popular among small to medium businesses, it does present limitations for wholesale distributors, no matter their size.
While QuickBooks Online does offer general purpose accounting features, it lacks the inventory management tools and integrations that wholesale distributors need to run their business effectively. Without these tools and integrations, wholesale distributors will struggle to grow their business.
If you’re looking to grow and scale your wholesale distribution business, QuickBooks Online may quickly become a challenge for you. In this post, we’ll outline five QuickBooks online inventory limitations for wholesale distributors.
1. QuickBooks Online Has Few Integrations for Wholesale Distributors
When you make QuickBooks the central cloud-based software for your wholesale distribution business, there are a limited number of integrations, some completely lacking, for wholesale distributors. For example, you’ll want access to payment acceptance vendors like CardConnect or shipping applications like ShipStation, which is designed for wholesale distributors selling via their eCommerce website.
When using QuickBooks with a 3rd-party payment acceptance application like CardConnect, your teams would be required to enter data in two different systems, which increases the likelihood for mistakes. Instead, choose wholesale inventory software that acts as the central platform for your wholesale distribution business to avoid this.
2. QuickBooks Online Lacks Inventory Tracking Features
With QuickBooks online, you can’t track inventory across every channel of business or warehouse. QuickBooks Online is able to support one warehouse location. If you plan to outgrow your current warehouse or you sell in multiple channels, such as your own B2B portal and in popular marketplaces, QuickBooks is not a viable solution. You also cannot do bin or lot tracking in QuickBooks, which is needed by most wholesale distributors.
3. Reports are Limited to Accounting in QuickBooks
While QuickBooks Online does have strong accounting reports, you can’t view the entire health of your business like you can with inventory management-focused software. You’ll need to aggregate data from your other applications regularly, even daily, to truly get an idea of how your business is doing. This would lead to time consuming reporting daily, something you simply don’t have time to do. Your executive team and sales representatives should be able to access up-to-the-minute sales numbers and forecasts, something you can’t do in QuickBooks.
4. QuickBooks Has Limitations with File Size and Data
With limitations on file size and data, you may quickly run out of the space you need for accounting and business-critical customer data, like invoices. In this case, you would have to delete files in order to meet data requirements, something you simply can’t do.
5. Lacks Personalized Support for Wholesale Distributors
You’ll likely get pushed to an online support center to resolve any issues you have when using QuickBooks Online. If you go with an inventory management-focused solution with strong support, you’ll get the assistance you need when you have an issue.
If you’d like to learn how Systum can provide you with everything you need to run your wholesale distribution business, fill out the form below.
Categories: Inventory Management