Have you synced your inventory management solution and your accounting solution? If not, you definitely should. If you are using QuickBooks Online, we have the best news for you! Megaventory integrates natively with it. If you prefer Xero, we have good news too: Megaventory integrates with Xero via Zapier. Connecting inventory management and accounting is not complicated, and it’s 100% worth it.
Why You Need a Seperate App for Accounting
You want only the best for your business, right? Of course, you do. This is why you need software that caters to your specific needs. We recommend using an inventory management solution that focuses only on inventory management. When you connect this with a top-notch accounting solution, you can put together a structure that caters to you specifically. Each business works a bit differently. Finding a solution that would work for you in both of these aspects is hard, even impossible. In addition to that, the quality of a “does-it-all” app is hardly ever that good.
When you use a native or third-party integration to connect two apps, you get exactly what your business needs. For example, Megaventory focuses on order and inventory management. It is rated one of the top apps at what it does, and not for no reason. Focusing on one main module has made it possible for Megaventory to develop a state-of-the-art application. Other apps, such as Xero, are very good at accounting. By connecting the two, you get the best of both worlds.
Connect Inventory Management and Accounting for Best Results
Best results? Yes, please. Here are 4 simple reasons why you need to connect your accounting software with your inventory management solution.
1. As your business grows, the complexity of your different transactions also grows
The more complex the payments and traffic of your warehouse become, the more room there is for error. To not miss a payment that goes together with an order, your inventory management software must integrate with your accounting solution.
2. Each purchase, sale, or other inventory change is accompanied by several different documents
All inventory changes happen in your inventory management solution. The multiple documents affect the price and cost of the order or the individual items in the order. With a lot going on, the amounts owed can be very complicated. Because order and inventory management is there to manage stock – not payments – you’d want to have your accounting solution be aware of all the changes associated with each order.
It’s the complication of these things that can easily become an issue. Let’s make it a non-issue by integrating the two software solutions.
3. Discounts, VAT and other regulatory requirements
Naturally, you will have your own discounts that you apply to incoming and outgoing goods. In addition to this, you need to take into account VAT and other regulatory requirements. Inventory management solutions rarely offer a comprehensive way of doing this, whereas that’s exactly what accounting does best. Make sure you’re good with the law and let the synced software keep up the standard.
Inventory Management solutions often have the possibility of creating reports. In fact, Megaventory has a broad selection of useful reports. The information for these comes from the data of your inventory.
However, an accounting solution will arrange the data in a different way. The benefit of this is that you will have two approaches to your data. Although Megaventory can give a lot of insight into your sales, it isn’t built to tell you what actually pays more or is faster. An accounting solution will also give you more information about VAT owed.
Overall you’ll get a more in-depth picture of where to steer your business in the future. Very important especially in the long run!
Why Xero Accounting Along With Inventory Management?
Xero is a popular, modern approach to accounting. It’s easy to use and even has its own mobile app. You can check your bills anywhere, any time. Xero users praise the app especially for its innovative way of accounting for Startups.
There are a lot of accounting solutions out there. The important thing is for you to find the one that works best for you. Megaventory integrates natively with Quickbooks Online, so from the integration point of view, this is great. However, thanks to Zapier, Megaventory seamlessly integrates with other solutions as well. One of these top accounting solutions is Xero. If QuickBooks Online is not for you, then definitely check out Xero!
And How Does Zapier Work, Exactly?
What about involving a third party? This is how integrating Megaventory and Xero works, through Zapier. Normally involving a third party in integration is not the way to go, but Zapier is the exception here. They have built a network of apps and are incredibly good at what they do! In short, you can put “rules” in place that will trigger actions in the two apps you want to connect. For example, you can tell Zapier to create a new document in Xero every time you create a new order in Megaventory. And – the best part – this happens without a single line of code on your end.
What Can I Practically Sync Between Xero and Megaventory?
With Zapier, you can synchronize the main components of inventory management and accounting between Megaventory and Xero. This means Clients, Products, Suppliers, etc. The main thing you want to synchronize, however, is Orders and Documents.
You can create triggers from Megaventory to Xero or vice versa. Creating a Zap takes just a couple seconds!
For example: put in place a rule that when you update a document in Megaventory, Xero can create a new bill.
Now, when you update a document in Megaventory, Xero will automatically create a new Bill for accounting purposes. All thanks to Zapier.
The two apps connected like this via Zapier will make the work in the background of your business run smoothly. This way you will be able to focus on other things. It is great to know that your accounting and inventory are being taken care of in the best way possible.
Here’s Exactly How You’ll Connect Megaventory and Xero
To show you how easy this connection really is, let’s do a deep dive into the Zapier interface. A couple easy clicks get you connected.
Step 1 – Get started!
Create a Zapier account. Then fill in the information on what sort of a Zap you want to create.
Do this by selecting the apps you want to connect (Megaventory and Xero). Then select a trigger and an action. In this example, when a Document is updated in Megaventory, a Bill is created in Xero. Click on Try It to get into motion.
Step 2 – Set up the trigger
Select the account you want the connection to correspond with and choose the document type you want the trigger to work with. Then hit Continue.
Now, you can do a test to make sure the zap connection works up until this point. Zapier will find the correct document in your Megaventory account.
Step 4 – Set up the action
Start by confirming the app you are connecting to and the action you want. In this example, a new bill will be created in Xero. Then hit Continue.
Now you’ll add in the information for the action just like you did for the trigger. Follow along with the simple steps Zapier gives you to completer the action.
Step 5 – Test and done!
Once you’ve filled in the form and created a zap, you are good to test your new functionality! Zapier will run a test for you and let you know that everything is in place.
When Not To Connect Megaventory and Xero Via Zapier
How do you know it will work for everyone? The simple answer is that it won’t. This setup may not be ideal for businesses that have a strong structure requiring Xero to have orders entered straight into it. In this case, you would want a native integration to take care of the heavy lifting. Secondly, a third-party connection is not the best with very complicated workflows, especially in manufacturing.
In both of these cases, the best way to go is with two apps that connect natively. As Megaventory integrates with Quick Books Online natively, so if you recognize your business in one of the above cases, let’s discuss how that could work for you!
Ready Connect Accounting and Inventory Management?
All that’s left for you to do now is try this! It’s a solution that has the potential of making your life much easier, and your business run smoother. Start a free Megaventory Trial today, and let’s do this. If you want more information, book a call with us. We can’t wait to talk to you!
Irene Dimakides does Digital Marketing and Content Creation for Megaventory. Her passion is to see people and businesses reach their full potential and move forward in that more freely. When she’s not writing the next piece of original content, you can find her at the beach with a book or getting food with friends.