Pros and Cons of QBO for CPG Companies

Running a CPG company is a whirlwind of managing production schedules, navigating supply chains, and staying on top of regulations. Efficient and accurate accounting processes are the backbone of your ongoing success, helping you stay compliant and profitable at all times. 

Keep reading to discover the pros and cons of using QuickBooks Online (QBO) for CPG companies so you can make an informed decision about whether it’s right for you.

QuickBooks Online Pros and Cons 

QBO is popular with CPG business owners, and understanding its specific benefits and potential pitfalls can help you decide if it's the right match for your business.

Pros of Using QBO for CPG Companies

Let’s break down QBO's benefits for CPGs. 

Extensive Integrations

QBO connects with a vast array of tools, amplifying its functionality and providing extra value for CPG businesses.

• Bill.com simplifies managing invoices and payments. You could be a specialty food brand that sources ingredients from multiple suppliers. Bill.com automates the payment process so all vendors are paid on time and you consistently maintain strong supplier relationships.

• Ramp oversees expenses and corporate cards. Consider a beverage company tracking marketing campaign expenses across various channels. Ramp provides real-time expense tracking, helping you analyze which marketing efforts yield the best ROI.

• Gusto streamlines payroll and HR tasks. For a mid-sized snack company, integrating Gusto with QBO automates payroll processing and helps you seamlessly organize employee benefits. In turn, your team is paid accurately and on time, even during busy harvesting and bottling periods.

• Cin7 enhances inventory management. A small cosmetics brand using Cin7 can track inventory levels, manage orders, and automate reordering when stock levels drop below a certain threshold, so customers always have access to popular products.

• Xenett delivers powerful financial insights. A craft brewery can use Xenett to monitor specific metrics, such as cost per barrel produced, sales by SKU, and seasonal sales trends. These insights help you make data-driven decisions, such as adjusting production schedules or reallocating marketing budgets.

Cost Considerations

QBO is a wallet-friendly option for CPG companies, particularly when stacked against pricier alternatives. Packages start at $30 per month for the Simple Start plan, going up to $200 for the Advanced plan. NetSuite is known for a similar suite of features but with a hefty starting price tag of $200 per user, per month. QBO stands up as a significantly more affordable option that doesn't sacrifice essential features.

There are extra charges for integrations and add-ons with QBO, but they tend to pay for themselves by boosting efficiency. For example, adding advanced third-party inventory management or detailed reporting tools significantly streamlines operations and improves accuracy, saving you cash in the long run.

QBO helps you master your finances while keeping costs in check, freeing up resources for innovation and marketing.

Ease of Use

QBO's user-friendly interface makes it a breeze for CPG companies to handle their financial tasks.

• Intuitive design. QBO’s clean, easy-to-navigate dashboard means users can quickly find what they need. For a small coffee roastery where the owner might juggle accounting tasks alongside production and sales, ease of use is a huge time-saver.

• Minimal learning curve. With clear instructions and helpful tutorials, new users can get up to speed quickly, reducing the time spent on training. A bakery expanding its product line can onboard new staff without significant training downtime.

• Time savings. Automating repetitive tasks, such as invoicing and expense tracking, allows your team to focus on strategic activities. For instance, a boutique tea company can automate recurring invoices for wholesale clients, ensuring timely billing without manual effort.

Scalability

QBO grows with your business, offering features that support expansion and increased complexity.

• Multi-user access. QBO allows multiple users with different access levels, making it easy to delegate tasks while maintaining control. For example, a growing organic snack company can have different team members oversee sales, inventory, and finances all within the same platform.

• Increased transaction capacity. QBO efficiently handles high transaction volumes, which is crucial as production and sales scale up.

• Integration with other tools. As your business expands, you can integrate more advanced tools for inventory management, CRM, and e-commerce, so all aspects of your operations are interconnected.

Financial Reporting and Analytics

QBO offers advanced financial reporting and analytics features that are invaluable for CPG companies.

• Detailed reports. Generate comprehensive financial reports, including profit and loss statements, balance sheets, and cash flow statements. A gourmet chocolate maker can use these reports to monitor profitability and make informed decisions about product lines and pricing.

• Customizable dashboards. Create personalized dashboards to track KPIs. For example, a natural skincare brand might look at sales by product category and region to identify growth opportunities.

• G-Accon integration. G-Accon enhances QBO’s reporting capabilities by allowing data to be exported to Google Sheets for detailed, customized reports. If you operate a craft brewery, you could use G-Accon to create in-depth sales reports, track inventory levels, and plan production schedules.

Cloud Accessibility

QBO’s cloud-based accessibility offers significant advantages for CPG companies.

• Real-time data updates. Access up-to-date financial information from anywhere so you always have a clear picture of your business’s financial health. 

• Remote access. Collaborate with your team, accountants, or consultants from different locations. For instance, a nationwide snack distributor can have regional managers input data and track performance in real time.

• Flexibility. Manage your business from any device with internet access. A home-based artisanal cheese producer might handle invoicing and bookkeeping from a tablet while tending to the painstaking cheese-making process.

Cons of Using QBO for CPG Companies

While QBO offers many benefits, it’s important to be aware of its drawbacks for CPG companies.

Inventory Management Integration

QBO's integration capabilities with inventory management systems have limitations:

• Single location limitation. QBO works best for businesses with inventory stored in a single location and start-ups operating at <$1m in revenue. For example, a small jam manufacturer operating out of one kitchen would probably find QBO adequate, but larger operations with multiple warehouses may face challenges.

• Complex inventory needs. Companies with multiple storage locations may find QBO’s lack of multi-location inventory management a significant drawback. However, tools like Cin7 or SOS Inventory can integrate with QBO to address some of these limitations.

It’s worth noting that QuickBooks Desktop does offer multi-location inventory management capabilities, so this might eventually be integrated into QBO. For now, businesses with more complex inventory requirements should consider the tools above.

Learning Curve for QBD Users

Transitioning from QuickBooks Desktop to QBO can present a learning curve, especially for users accustomed to the desktop interface. For instance, the longstanding team at a mom-and-pop bakery established 40 years ago might need extra training to adapt to the new system. However, the investment in learning pays off in boosted efficiency and ease of use long term.

Customer Support Concerns

Reviews note that QBO's customer support can sometimes fall short:

• Response times. Some users report slow response times from QBO support, which can be frustrating during critical periods, such as end-of-year tax filings or product launches.

• Quality of assistance. The quality of support can vary, with some reviewers finding it inadequate for complex issues. 

Partnering with an accounting firm like BBG can offset these concerns, as we have access to dedicated support teams at Intuit and can provide advanced troubleshooting assistance.

Making an Informed Decision About QBO

QBO provides a slew of benefits, such as extensive integrations, cost-effectiveness, ease of use, scalability, and advanced reporting capabilities. However, it also has some drawbacks, particularly when it comes to inventory management and customer support.

Carefully weighing the pros and cons and considering your specific business needs is the only way to make an informed decision that supports growth and bolsters operational efficiency.

For personalized guidance and support, contact Balanced Business Group today. Our experts can optimize your use of QBO and other financial tools, helping you get the right solutions in place to drive your business forward.