Full Guide: How to Use QuickBooks for Distribution Company

Ever wondered if there's a secret ingredient to supercharging the efficiency of your distribution company? In an industry where 1.79% of businesses trust QuickBooks Desktop Enterprise for their accounting needs, it's clear that leveraging the right tools in innovative ways can make all the difference.

QuickBooks isn't just for accounting; it's a transformative tool for distributors. This guide uncovers how QuickBooks, tailored for the distribution industry, can streamline your business operations to unparalleled efficiency.

Here's a quick overview of what we'll dive into:

• Customizing QuickBooks for the unique dynamics of a distribution company

• Discussing QuickBooks' limitations in distribution management.

• Exploring pricing levels in QuickBooks and how Solid Innovation enhances these capabilities.

• Exploring the powerhouse that is QuickBooks Online for wholesale distributors

• Essential tips for optimizing QuickBooks setup for your distribution operations

• Navigating through QuickBooks versions to find your distribution company's best fit

• Mastery over QuickBooks features critical for distribution: inventory tracking and sophisticated order management

P.S., it's hard to talk about optimizing QuickBooks for distribution without giving a shoutout to the #1 route accounting system that seamlessly integrates with QuickBooks: Solid Route Accounting™. This tool integrates flawlessly with QuickBooks, providing an unparalleled boost in managing orders, inventory, and customer relationships.

It's not just an add-on; it's a game-changer for distributors looking to elevate their operations.

QuickBooks Basics: Your Distribution Superpower

Navigating the complexities of a distribution company can feel like a juggling act. But what if I told you QuickBooks is the secret weapon you've been looking for? That's right—it's more than just an accounting tool; it's the navigator for your distribution voyage.

Customizing QuickBooks: Your Distribution Blueprint

QuickBooks isn't one-size-fits-all. It's the Swiss Army knife for your distribution challenges, adaptable and ready to tackle everything from the tiniest local network to sprawling operations. How you wield it—for inventory management, sales tracking, and financial oversight—is the real game-changer.

Cracking the code on distribution

• Inventory Management: Like a GPS for your stock.

• Sales Order Processing: Smooth sailing from order to delivery.

• Delivery Tracking: Always know where your goods are in real-time.

The Magic of distribution reports

• Inventory Levels at a glance

• Sales Trends that inform strategic moves

• Financial Health, transparent and clear

Owner distributions: A transparent ledger

Whether you're splitting profits between an LLC or partnership, QuickBooks keeps it clear. Equity accounts track every dime, making tax time a breeze and investment decisions sharp.

Leveraging QuickBooks to Master Distribution

QuickBooks does more than balance books. It's the engine powering your distribution operations, with tools for:

• Inventory Tracking: Know what you have and where it is.

• Order Management: From order to delivery, without the headache.

• Financial Reporting: The numbers, plain and simple.

Customization is key, turning QuickBooks from a tool into a tailor-made solution for your business. By integrating QuickBooks into your operations, you're not just staying afloat. You're charting a course to success with efficiency as your guide and growth on the horizon.

The Limitations of QuickBooks in Distribution

While robust and versatile, QuickBooks isn't without its shortcomings, especially in the context of distribution operations. It falls short in several key areas that are crucial for distributors looking to streamline their processes and safeguard sensitive data.

• Customer Management: QuickBooks does not offer a detailed way to manage customer information such as credit limits, phone numbers, and buying history in a manner that's easily accessible for sales and distribution efforts.

• Order Placement and Management: The platform lacks specialized features for efficient order placing and tracking, crucial for distribution companies managing large volumes of orders.

• Sales Rep Segmentation: There's no built-in functionality to assign orders based on segmented sales rep territories or to restrict visibility only to relevant itineraries, potentially leading to inefficiencies and data privacy concerns.

• Mobile Accessibility and Data Security: While QuickBooks offers mobile solutions, they may expose confidential company financials to sales reps who require only limited data access. Moreover, its dependency on a live data connection can be a limitation in field operations.

Solid Innovation®: Bridging QuickBooks' gaps

Enter Solid Route Accounting™ for QuickBooks, a tailored solution designed to overcome these very limitations. Solid Innovation®'s product enriches QuickBooks by addressing the specific needs of distribution companies.

• Enhanced Customer Management: It integrates seamlessly with QuickBooks to provide comprehensive customer insights, including credit limits, contact details, and purchase history, directly enhancing relationship management and sales strategies.

• Streamlined Order Placement: Solid Route Accounting™ simplifies the order-placing process, enabling efficient management and tracking of orders directly from placement to delivery.

  

• Sales Rep Segmentation and Security: With features designed to assign and manage sales territories, it ensures that sales reps have access only to the data and orders relevant to them, safeguarding sensitive company information and optimizing sales efforts.

• Offline Capabilities and Data Protection: The solution offers robust mobile system capabilities without the need for a constant live data connection, providing sales reps with the necessary tools while on the go and ensuring data security.

By filling these gaps, Solid Route Accounting™ for QuickBooks not only complements the accounting giant but also transforms it into a comprehensive tool tailored for the distribution sector, ensuring businesses can leverage the best of QuickBooks without its limitations.

Enhance Pricing Flexibility: QuickBooks and Solid Route Accounting™

While QuickBooks provides a robust platform for financial management, its capabilities in managing complex sales price strategies, particularly for distribution companies, have certain limitations.

QuickBooks and Pricing Strategies for Distributors: An Overview

• Core Functionality of QuickBooks:

  • Primarily a robust platform for financial management.

  • Offers basic functionalities for managing sales prices.

• Price Levels Feature:

  • Provides custom pricing for different customers and customer groups.

  • Helps in implementing basic pricing strategies.

• Types of Price Levels in QuickBooks:

  • Fixed Percentage Price Levels:

    • Adjusts all item prices for a customer by a set percentage.

  • Per Item Price Levels:

    • Allows custom prices for individual items for different customers.

• Limitations:

  • QuickBooks allows only one price level assignment per customer.

  • This presents a challenge for distributors needing more complex, dynamic pricing strategies.

Solid Route Accounting™: Closing the gap

Solid Route Accounting™ for QuickBooks steps in to bridge these gaps effectively. It seamlessly extends the pricing functionalities of QuickBooks, enabling distribution companies to:

• Apply custom pricing more flexibly across different customer segments, without being limited to one price level per customer.

• Automatically pull up the correct custom price for a customer every time an item is added to a transaction through Solid Sales Pro™, ensuring accuracy and efficiency in order management.

• Manage and synchronize these specialized pricing strategies across devices, ensuring that the right prices are always at your sales reps' fingertips, even without a live data connection.

Solid Innovation®'s integration with QuickBooks addresses the nuanced requirements of distribution companies, providing a more comprehensive solution for custom pricing and sales management.

Through Solid Route Accounting™, businesses can implement sophisticated pricing models tailored to their unique operational needs, enhancing customer satisfaction and driving sales efficiency. This synergy between QuickBooks and Solid Innovation® offers the best of both worlds—robust accounting and precise, flexible pricing management.

How to Elevate Your Wholesale Distribution with QuickBooks Online

QuickBooks Online (QBO) isn't just a financial management tool; it's a lifeline for wholesale distributors. In a sector where margins are tight, and efficiency is everything, QBO emerges as a beacon of optimization. Let's break down why it's a game-changer.

Real-time access

• Cloud-Based: Access your financial data anytime, anywhere. Whether you're on the warehouse floor or halfway around the world, your business is at your fingertips.

• Multi-User Access: Teamwork makes the dream work. QBO allows multiple users to access the platform simultaneously, ensuring your team stays in sync.

Inventory management

• Automated Tracking: Say goodbye to manual counts. QBO automates inventory tracking, reducing errors and saving time.

• Insightful Reporting: With detailed reports, you can understand your stock levels like never before. This will help you make informed purchasing decisions and keep your inventory lean.

Seamless integration

• Integration with Apps: QBO connects with hundreds of apps, from e-commerce platforms to CRM systems. This integration streamlines workflows and amplifies efficiency.

• Solid Route Accounting™: Pair QBO with Solid Route Accounting™ for an unbeatable combo. Together, they offer a comprehensive solution for order entry, invoicing, and inventory management—tailored for distributors.

Cash flow clarity

• Instant Overview: Get a clear picture of your cash flow with QBO's dashboard. Understanding your financial health has never been easier.

• Automated Invoicing and Payments: Improve cash flow with faster invoicing and easy payment options. Less time chasing payments means more time growing your business.

Customizable reports

• Tailored Insights: With QBO, you can customize reports to suit your needs. Whether it's sales performance, customer insights, or inventory levels, you have the data to make strategic decisions.

Scalability

• Adaptable: As your distribution business grows, QBO grows with you. Its scalable nature means you won't outgrow it—instead, it adapts to your evolving needs.

QuickBooks Online isn't just about keeping the books; it's about offering a 360-degree view of your wholesale distribution business.

With its cloud-based flexibility, comprehensive inventory management, and powerful integrations—especially with Solid Route Accounting™—QBO is the silent partner you didn't know you needed. It’s time to unlock your business's potential and propel it into a future of streamlined operations and growth.

Tips for Optimizing QuickBooks Setup for Your Distribution Operations

Diving into QuickBooks without a roadmap can feel like navigating a maze without a compass. But don't worry; we've got your back. Tailoring QuickBooks for your distribution operations can transform it from a standard accounting tool into your operations' nerve center. Here's how to fine-tune your QuickBooks setup for peak performance in the distribution arena.

Start with the basics

• Chart of Accounts: Tailor your chart of accounts to reflect your distribution business's unique aspects. This foundation will streamline financial reporting and analysis.

• Items List: Build an extensive items list that includes every product you distribute. Accurate item tracking is crucial for inventory management and order fulfillment.

Leverage advanced inventory features

• Turn on Advanced Inventory: This QuickBooks feature is a game-changer for distributors. It enables serial number tracking, FIFO costing, and multiple warehouse management.

• Barcode Integration: Utilize barcode scanning for inventory management. This reduces errors and speeds up both receiving and picking processes.

Automate wherever possible

• Recurring Transactions: Set up recurring invoices for regular customers. Automate purchase orders for your most common stock replenishments.

• Bank Feeds: Connect your bank accounts to QuickBooks for real-time financial data. This not only saves time but also ensures accuracy in your cash flow management.

Custom reporting for deep insights

• Custom Reports: Use QuickBooks' custom reporting feature to create reports that matter most to your distribution business. Sales by item, customer profitability, and inventory turnover reports can provide strategic insights.

• Scheduled Reports: Automate report generation to keep stakeholders informed. Regularly reviewing key metrics can help you make timely business decisions.

Streamline sales orders and invoicing

• Sales Order Workflow: Implement a sales order workflow that tracks each order from placement to fulfillment. This will ensure that nothing falls through the cracks.

• QuickBooks Payments: Enable QuickBooks Payments to streamline invoicing and payment processing. Faster payments improve cash flow—a critical aspect of distribution operations.

Integrate with Solid Route Accounting™

• Seamless Integration: Solid Route Accounting™ integrates with QuickBooks to offer a specialized solution for distributors. This combo enhances capabilities in order management, invoicing, and inventory control, tailored specifically for distribution needs.

Review and refine regularly

• Continuous Improvement: Your business evolves, and so should your QuickBooks setup. Regularly review your setup and processes to ensure they align with your current operational needs and goals.

By applying these essential tips, you'll transform QuickBooks into a powerhouse tool that not only manages your finances but also optimizes your entire distribution operation.

It's about making QuickBooks work for you, turning complex processes into streamlined successes. With these optimizations, QuickBooks becomes not just software but a strategic partner in your business growth.

Top Inventory Management Tools Integrated with QuickBooks

Choosing the right inventory management tool that integrates seamlessly with QuickBooks can be a game-changer for your business. It's about finding a solution that not only simplifies your inventory processes but also enhances your overall operational efficiency.

Below, we've outlined some of the top inventory management systems that work hand in hand with QuickBooks, comparing their features and pricing to help you make an informed decision.

1. Solid Route Accounting™ for QuickBooks

Solid Innovation® specializes in creating advanced route accounting software and Direct Store Delivery (DSD) systems that enhance mobile sales, inventory management, and ERP integration solutions.

Our flagship product, Solid Route Accounting™ for QuickBooks, is designed to streamline operations for distributors, providing seamless integration with QuickBooks for efficient mobile invoicing, inventory control, and insightful management reporting.

With decades of experience, Solid Innovation® is committed to helping businesses optimize their distribution strategies and boost profitability through reliable, user-friendly technology.

• Features:

  • Offers seamless integration to enhance mobile invoicing and inventory control and provide insightful management reports.

  • Simplify financial reporting, real-time transactions, and mobile sales team management, making it an invaluable tool for distributors.

    

• Pricing: Its unbeatable sale price of $39.95 makes it accessible for businesses of all sizes looking to optimize their inventory management without breaking the bank.

2. Fishbowl

Fishbowl is a leading provider of inventory management software solutions for businesses that require advanced features such as inventory tracking, barcode scanning, order management, and manufacturing capabilities.

The company has carved a niche for itself by offering powerful, scalable solutions that integrate seamlessly with QuickBooks, addressing the complex needs of growing businesses. Fishbowl helps companies improve their inventory accuracy, reduce waste, and increase efficiency.

• Features: Offers comprehensive inventory tracking, barcode scanning, order management, lot tracking, and manufacturing capabilities. Fishbowl is renowned for its robust functionality that caters to a wide range of business needs.

• Pricing: Available at a one-time fee of $4,395 or a monthly subscription of $395. This pricing structure makes Fishbowl a considerable investment, suited for businesses looking for an extensive feature set.

3. Acctivate

Acctivate is a comprehensive inventory management system designed to help small and medium-sized businesses streamline their operations.

Specializing in inventory tracking, order management, purchasing, and manufacturing features, Acctivate enhances business processes with robust functionality and QuickBooks integration. The company focuses on delivering solutions that improve visibility, control, and efficiency across various industries.

• Features: Like Fishbowl, Acctivate provides inventory tracking, order management, purchasing, manufacturing, lot tracking, and serial number tracking. It stands out for its ability to manage complex inventory scenarios.

• Pricing: Starts at $4,995 (one-time) or $160/month. Acctivate's pricing positions it as a solution for businesses that need detailed inventory and order management without the higher monthly fees of some competitors.

4. SOS Inventory

SOS Inventory offers a powerful online inventory, order management, and manufacturing system designed specifically for integration with QuickBooks Online. It provides businesses with the tools needed for detailed inventory tracking, order processing, and manufacturing management.

SOS Inventory stands out for its commitment to helping small and medium-sized businesses manage their operations more effectively. It offers a comprehensive set of features tailored to their unique needs.

• Features: Offers a robust inventory management system including inventory tracking, order management, purchasing, manufacturing, lot tracking, and serial number tracking. SOS Inventory is designed for businesses that require detailed tracking and reporting.

• Pricing: Starts at $299/month, making it a mid-range option for small to medium-sized businesses looking for comprehensive functionality without a large upfront cost.

5. TradeGecko (now QuickBooks Commerce)

TradeGecko, which has been rebranded as QuickBooks Commerce, is a cloud-based inventory and order management platform for modern merchants. The company offers solutions that streamline inventory tracking, order management, purchasing, and manufacturing processes, along with B2B eCommerce capabilities.

TradeGecko's mission is to enable commerce entrepreneurs to build the business of their dreams by simplifying the operational complexities of running an eCommerce or wholesale distribution business.

• Features: Provides inventory tracking, order management, purchasing, manufacturing, lot and serial number tracking, and B2B eCommerce capabilities. TradeGecko is known for its ease of use and the added advantage of a B2B eCommerce platform.

• Pricing: Starting at $79/month, TradeGecko is an affordable option for small to medium-sized businesses needing strong inventory management with eCommerce functionality.

6. SkuVault

SkuVault is an inventory and warehouse management technology platform that empowers eCommerce retailers to scale their operations. The company offers advanced inventory tracking, order management, picking and packing, and B2B eCommerce solutions.

SkuVault's focus is on optimizing operations to reduce costs, improve accuracy, and increase efficiency for online merchants, enabling them to manage their inventory and fulfillment processes more effectively.

• Features: SkuVault excels at inventory tracking, order management, picking and packing, lot tracking, serial number tracking, and B2B eCommerce features. It's particularly well-suited for businesses with a significant online presence.

• Pricing: Begins at $499/month, positioning SkuVault as a premium option for businesses that require extensive eCommerce integrations and advanced warehouse management features.

Making the right choice

Inventory Management System	Features	Pricing
Solid Route Accounting™ for QuickBooks	Mobile invoicing, inventory control, management reports, seamless QuickBooks integration	Starting at: $39.95/month
Fishbowl	Inventory tracking, barcode scanning, order management, lot tracking, manufacturing	Starting at $4,395 (one-time) or $395/month
Acctivate	Inventory tracking, order management, purchasing, manufacturing, lot tracking, serial number tracking	Starting at $4,995 (one-time) or $160/month
SOS Inventory	Inventory tracking, order management, purchasing, manufacturing, lot tracking, serial number tracking	Starting at $299/month
TradeGecko (now QuickBooks Commerce)	Inventory tracking, order management, purchasing, manufacturing, lot tracking, serial number tracking, B2B eCommerce	Starting at $79/month
SkuVault	Inventory tracking, order management, picking and packing, lot tracking, serial number tracking, B2B eCommerce	Starting at $499/month

Selecting the best inventory management tool integrated with QuickBooks depends on your business's specific needs, budget, and growth plans. Whether you prioritize advanced manufacturing features, seamless eCommerce integrations, or cost-effective solutions, there's an inventory management system out there that fits your requirements.

Evaluate each option's features and pricing carefully to ensure you choose a system that not only integrates well with QuickBooks but also propels your business forward.

Maximizing Distribution Efficiency with QuickBooks Features

QuickBooks, renowned for its robust accounting solutions, also offers a suite of features specifically designed to enhance the operations of distribution companies.

By leveraging QuickBooks' capabilities in inventory tracking and order management, distributors can significantly streamline their processes, ensuring efficiency and accuracy at every step. Let's delve into how using these QuickBooks features can transform a distribution company's operations.

Inventory tracking

• Real-Time Inventory Updates: QuickBooks provides live updates on your inventory levels, ensuring that you always know what's in stock, what's running low, and what needs to be reordered.

• Inventory Valuation: Easily track the cost of your inventory with QuickBooks’ inventory valuation methods, helping you make informed pricing and purchasing decisions.

• Barcode Scanning: With compatible hardware, QuickBooks can incorporate barcode scanning to simplify the inventory management process and help you track products throughout your warehouse.

Benefits:

• Reduce the risk of stockouts and overstocking by maintaining optimal inventory levels.

• Improve accuracy in inventory records, saving time and reducing errors in stock management.

Order management

• Sales Orders and Invoicing: QuickBooks allows you to create sales orders directly from your inventory records, streamlining the sales process from order to invoice.

• Customer Management: Maintain detailed customer records, including order history and payment terms, to enhance customer service and streamline the order process.

• Backorder Tracking: Manage backorders efficiently, keeping your customers informed and ensuring that orders are fulfilled as soon as stock becomes available.

Benefits:

• Enhance customer satisfaction through timely and accurate order processing.

• Streamline the order-to-cash cycle, improving cash flow and operational efficiency.

Integration with third-party apps

QuickBooks supports integration with a variety of third-party apps and services, further extending its capabilities to meet the specific needs of distribution companies.

By integrating QuickBooks with apps for eCommerce, CRM, and inventory management, such as Solid Route Accounting™ for QuickBooks, businesses can enjoy a seamless ecosystem that covers every aspect of distribution operations.

Reporting and analytics

• Custom Reports: Generate detailed reports on sales, inventory, customer interactions, and more, tailored to your distribution company's unique needs.

• Analytics: Use QuickBooks’ analytics features to gain insights into your business performance, helping you make data-driven decisions.

Benefits:

• Gain a deeper understanding of your business operations and financial health.

• Identify trends, challenges, and opportunities for growth through comprehensive data analysis.

Leveraging QuickBooks for distribution success

Using QuickBooks Enterprise's robust features tailored for inventory management and order processing, distribution companies can significantly improve the efficiency and precision of their operations.

QuickBooks Enterprise's features, when integrated with Solid Route Accounting™, provide significant advantages for distribution companies:

• Inventory Management Efficiency for Wholesale Distribution Business:

  • Equips the wholesale distribution business accurately with real-time updates on inventory stock status.

  • Automated inventory counts.

  • Handling multiple warehouses with management capabilities.

  • Streamlined accounting processes.

  • Comprehensive vendor contact information.

• By integrating QuickBooks Enterprise with Specialized Software Distributors Gain:

  • Automatically upload inventory counts for up-to-date inventory levels.

  • Seamless connection between operational and QuickBooks data.

  • Enriched sales order fulfillment processes.

  • Precise sales price setting.

  • Deep business insights.

• Overall Business Advantages:

  • Enhanced cash flow management.

  • Empowered decision-making in a competitive marketplace.

  • Tools to refine processes, elevate customer satisfaction, and drive business growth.

Solid Route Accounting™ for QuickBooks

Navigating the world of distribution with QuickBooks at your helm means setting sail toward efficiency and accuracy. We've charted the course, highlighting the transformative power of integrating sophisticated inventory management and order processing capabilities within your operations.

Key Takeaways:

• Leverage QuickBooks for real-time inventory updates and order management.

• Integrate with third-party apps for enhanced functionality.

• Utilize reporting and analytics for informed decision-making.

As you journey through the complexities of distribution, remember that Solid Route Accounting™ for QuickBooks is your compass. It enhances QuickBooks' already formidable capabilities, ensuring you're not just moving through the motions but steering towards unprecedented efficiency and success in your distribution endeavors. Check out our full software solutions!