The lifeblood of most small business accounting is QuickBooks Online. Once there is money to be managed, it is typically sent through some type of accounting software and QuickBooks Online is usually the go-to in this case. It is a great choice for its scalable service options, its ease of access to data on the cloud, and its ability to sync with so many different systems already at play by most CPG businesses like Bill, Expensify, and eComm websites.
Cin7 works wonders for those searching for a great inventory management system that reflects the more finite aspects of your costs of goods sold. If you are on the fence about matching up your trusty accounting software with your inventory management system, we are here to help. Let’s dive into why QuickBooks and Cin7 go hand-in-hand, and why aligning both gives you inventory management superpowers.
Both tools can manage inventory when used as a standalone option, but QuickBooks Online is not necessarily great for this, long-term. You are much better off leaning on Cin7 for your finite inventory management needs, and QuickBooks for its overall accounting functionality. For example, you won’t expect Cin7 to perform duties like bank reconciliation automation, sales tax automation and processing, and financial month-end tasks. On the flip side, you can input costs of goods sold into QuickBooks, but it will require more manual inputs, and will not easily drill down to the more finite details.
Any skilled accountant steeped in managing an inventory-based business’s accounting will strongly support leaving the accounting to QuickBooks and the Inventory Management to Cin7. The beauty lies in the fact that you can match up both, in a harmonious synchronization. One that results in the perfect blend of automation and access to real-time data.
QuickBooks is great at providing lots of accounting functionality, and it is imperative that you lean on its ability to help you process the accounting side of your business. QuickBooks syncs with popular bill-paying software like Bill, Expensify, and will pull data from your linked bank accounts. This results in a seamless flow of data to properly code transactions and apply payments to bills. It is also great for pulling reports and financial planning. For example, using a cash flow statement when planning large inventory purchases or product launches. QuickBooks will help map this out in a simple cash flow statement.
Cin7 is designed to show all of the finite aspects of your cost of goods sold and map out where inventory is, and what is available (among many other things, of course). If you need more on this part, read how we’ve raved about its amazing features and ability to show uber-helpful data related to your inventory costs. These are invaluable details that help you understand the most accurate costs associated with each step of the process; from raw materials to finished goods. While you can get by with many of the accounting functions in Cin7, having QuickBooks do more of the heavy accounting-admin lifting will streamline and automate those operations better. Cin7 will enhance your visibility into the cost of goods sold and be the supplier of precise data to fine-tune your COGS. Need to translate costs into multiple currencies? Cin7 has that covered. Need an accurate and up-to-the-minute look into where your inventory sits? Consult Cin7, then plan the cash on-hand to restock using a report pulled from QuickBooks.
A huge benefit of using systems like QuickBooks and Cin7 have to do with time savings through the automation of mundane tasks or pulling from detailed data. This stellar pairing supports a nice menu of automation options designed to save the end user’s time.
A second giant benefit of using modern, cloud-based systems are the dashboards. Cin7 and QuickBooks pair well to feed the data needed into a more visually appealing format. From these dashboards, you can easily see which areas of the inventory need to be addressed, from a quick glance. Once the accounting data refreshes from QuickBooks, you can see up-to-the-minute snapshots of sales, purchases, credit notes, and more.
Both systems alone are stellar examples of their kind, but they work even better as a team, especially if you run a complex inventory-based business. Cin7 allows you to access finite data on your cost of goods sold, while QuickBooks manages and automates the more complex accounting tasks and reporting. Paired together and kept up to date, these tools will provide the precise data from which you can manage your margins, plan your business, execute and automate accounting tasks, and pull reports to keep your business running at maximum efficiency.
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Accountfully and CIn7 have partnered up to provide the ins and outs of basic to advanced inventory management in this special Inventory Management 101 Series. If you manage inventory and seek more precise control over your cost of goods sold and more insight into your greatest asset, consider implementing an IMS to support your goals.
For more information on Cin7 and its products, visit our expert partner page, where you will get to know the product in detail and read client testimonials.