If you are a small business owner or a restaurant chef, you will need a place or a list where you store your inventory. What we mean by this is that you will need a bill of materials, or BOM, to keep track of all the necessary ingredients, articles, and such, that lead you to a manufactured end product.
That process has previously been dealt with on paper, but modern technology has allowed advancement in that department by enabling storage of the bill of materials digitally. That’s why the QuickBooks bill of materials was invented – to help out in the business industry.
Why Is BOM Important?
If you are new to the small business or manufacturing industry, you have probably heard people talking about the bill of materials. The BOM is a complete list of all raw materials, sub-assemblies and components, intermediate assemblies, and parts needed for manufacturing a perfect product. Additionally, it contains the quantities of all items on the list.
The bill of materials is essential to make the manufacturing process more manageable and successful. It is vital to keep the manufacturing process accurate because you do not need additional problems.
A compromised BOM leads to loss of revenue, potential problems in the team, and ultimately to incomplete products or services. For example, if your client ordered 50 desks and 200 chairs and your BOM shows that you can provide only 40 desks and 150 chairs because you ran out of inventory – it results in terrible losses and a bad reputation.
To avoid scenarios like the one we just mentioned, you will need a way to simplify the input of required raw materials, sub-components, sub-assemblies, parts, and their quantities – so, let’s discuss QuickBooks.
Should You Get QuickBooks?
Even though there is a QuickBooks online version, the QB bill of materials online is not an option yet. QuickBooks offers a desktop version to keep track of your bill of materials. The original purpose of Quickbooks was to keep track of finances. That is the reason why QuickBooks’ BOM is still underdeveloped.
Regardless, it is probably one of the most accessible solutions to keep your BOM stored digitally, although in combination with another software. QuickBooks bill of materials shows great results if you use it to manage your finances in collaboration with another software to keep track of the rest of your business.
Keep in mind that using QB to manage your whole business could be a bit problematic, but not unmanageable. The software needs further development to become a complete and only option for small business owners. Until then, the QB bill of materials integrated with other software is a great way to navigate your business.
Additionally, you can use QuickBooks for other parts of your business since it has shown to be of tremendous help.
QuickBooks Other Features
Small businesses use QB to help them pay their bills, keep track of their invoices, payrolls, and much more. QB offers a 30-day free trial, so you can try it out before you decide to purchase it.
Here are some other ways to use QuickBooks as small businesses do: