So you seem to recall seeing somewhere that QuickBooks has a manufacturing version and
thought it might be the answer for your business?
It is very true that there is a QuickBooks Manufacturing and Wholesale edition (not sure why they combined those business types into one package, but I won't go there in this post).
However, whenever I hear QuickBooks and manufacturing in the same sentence, it gives me reason to pause. The QuickBooks Manufacturing and Wholesale edition can be a perfect solution for some manufacturers, and not-so-perfect for others.
Here are 5 things you should know about the manufacturing edition of QuickBooks:
1) It only supports an average cost system. For many businesses, that is perfectly fine and of no concern. For others, it is a big one. You would have to look into the QuickBooks add-on market space for FIFO, LIFO, specific, landed or other costing calculations.
2) It knows nothing about routers or shop floor planning. Remember, QuickBooks is an accounting package with some manufacturing capabilities tossed in.
3) Serial # tracking is not supported. In order to have this capability, you would have to use the Warehouse Management System module that is only available in the QuickBooks Enterprise version. It is not available in the Pro or Premier versions of QuickBooks, not even the QuickBooks Premier: Manufacturing and Wholesale Edition.
4) Lot tracking is not supported. Same as #3 above - just substitute lot tracking for serial # tracking.
5) Multi-level bills of material are possible, but rough to work with. By that, I mean you can create a BOM that has multiple levels in it. However, trying to work with them to find things such as where used, substitutions, etc. is not practical.
ALL IS NOT LOST!
If your manufacturing business doesn't need any of the above functionality, the QuickBooks Manufacturing and Wholesale edition may be a very good fit for your needs. In fact, tens of thousands of manufacturing businesses are using it quite successfully today.
If your business does have a need for one or more of the above functions, here is the winning (and budget-friendly) game plan:
- Use QuickBooks for all of your accounting and financial reporting needs, and use an add-on package that meets the specific needs of your manufacturing systems and requirements. There are several excellent packages that seamlessly integrate with QuickBooks to provide the best of both for your business - the best accounting and the best manufacturing. Even better, this approach is usually tens of thousands of dollars less than trying to use one of the more complicated manufacturing software or higher end accounting software alternatives.
NEED HELP FIGURING OUT WHAT YOUR BUSINESS NEEDS?
Scott can help you make heads or tails out of the QuickBooks add-on marketplace when it comes to manufacturing. He offers a value-priced mini-needs assessment service to help you save time on your initial search. He also offers a more comprehensive needs analysis service for more complicated environments.
Don't waste another minute trying to sort through the thicket of tech jargon to determine what is right for you. Contact Scott today!