Companies that sell through several channels (i.e. physical stores, web stores, online marketplaces, etc.) are finding it more and more difficult to handle the “transaction shuffle.” Do you know what I mean? Post order information here, send shipping information there, update inventory when you get time. It doesn’t take long to fall behind or to realize how many mistakes are being made. Especially when you spend more time fixing errors than you do leading your business – and when you realize that your margins on these sales channels are quite slim due to the huge labor costs you accumulate trying to manage them.
The answer to this fiasco is not one most companies want to hear: integration. But wait! Integration doesn’t have to be hard or expensive. There are several options for how to integrate QuickBooks with your eCommerce system, point-of-sale (POS) system or online marketplace. You just need to understand them and make a smart choice.
QuickBooks Integration Options
Integration is not a “one size fits all” kind of project. Of course there are a lot of technology options to help you physically move data, but today we will look at three: custom development, packaged point-to-point solutions, and multiple channel integration platforms.
Custom development – The benefit to custom development is that you can get exactly what you want, customized to your business needs. This may be important if you have a highly unique business model or product. But for most, custom development ends up costing way more than any other solution option. You are tied to the individual who created it which makes you vulnerable. And with how quickly the market is changing, updates are bound to be difficult and expensive to maintain.
Packaged point-to-point solutions – What point-to-point solutions offer is a connection between QuickBooks and one other system (i.e. Magento eCommerce, Microsoft Dynamics RMS, or Amazon.) They are typically quick and inexpensive. They are a good choice for companies that sell through a single channel and don’t plan on selling through any other. Issues arise when you change your mind and decide to, say, sell on eBay. Now, you have to buy another point-to-point solution and since it doesn’t communicate with the first point-to-point solution you bought, things are messy again.
Multiple channel integration platforms – The name sounds fancy and intimidating, and some are, but others are simple to install and use. You must do your due diligence here to know the difference. These systems are typically cloud-based so there is no software investment and you only pay a monthly subscription fee. Most services manage item uploads, orders, shipping information and inventory. Some also collect customer data, allow you to define business rules to split/route orders, and enable drop ship suppliers and third party warehouses. Along with the core services, these solutions have several connections to popular accounting or ERP packages (like QuickBooks) as well as connections to multiple sales channels like POS systems, eCommerce providers and marketplaces. They allow you to pick the connections you need to fit your business. So you may have QuickBooks for accounting, Microsoft Dynamics RMS for your POS, Shopify powering your web store, and sell on Amazon. The beauty of this model is that you can choose connectors to fit your business today, unplug ones that don’t work out, and then plug in new ones as you need them.
Read more from CPA Practice Advisor