MSMEs are highly creative but often struggle with time, paperwork, and complex processes. Automation tools are like quiet helpers in the background. They handle the tedious tasks for you so you can focus on making, designing, and selling beautiful products. Modern point-of-sale, accounting, and inventory tools now offer powerful automation features that help small businesses save time, reduce errors, and grow faster.
1. Why craft businesses need automation
Most of the time, craft business owners are designers, makers, packers, marketers, and accountants all at once. That mix is beautiful, but it also wears me out. Automation tools can help you:
Save hours every week on billing, stock updates, and manual data entry.
Reduce errors in orders and payments that could anger loyal customers.
Get clear numbers on sales, costs, and profits so you can grow with confidence. In short, automation helps your business operate like a larger, more professional brand, even if your team is small.
2. What is business process automation for MSME crafts?
Business process automation is the use of software or machines to perform repetitive tasks in your business with minimal human intervention. For a craft business, this could mean:
Automatic payment collection and receipts at your stall or online store. Automatically generated invoices, expense tracking, and basic payroll. When you sell on Etsy, your website, or at a craft fair, your stock levels will automatically update. Knitting or production machines use a digital pattern to produce identical pieces.
Your website sends orders to a system that plans production and tracks inventory.
The idea is simple: let the tools handle the boring, repetitive work so you can focus on design and customers.
3. Square: Best for sales and payments
Square is an all‑in‑one point‑of‑sale (POS) system used by small retailers, cafes, and makers to accept card payments in person and online. It also tracks inventory, customers, and sales performance on a single dashboard.​
Key automation features for craft businesses
- Unified sales channels: See in‑person, online, and third‑party sales in one place, instead of separate spreadsheets.​
- Automatic receipts and invoices: Send digital receipts and simple invoices without manual formatting.​
- Inventory alerts: Get low‑stock alerts so you know when to reorder.​
- Customer tracking & loyalty: Save customer profiles and purchase history, and run simple loyalty programs right inside the POS.​
Square helps you avoid “I forgot to update inventory” problems and the need to enter cash into a manual cashbook when you sell at local markets, pop-ups, a small store, or online. Its automation handles tasks such as processing payments, updating stock levels, and maintaining customer data in the background.​
4. QuickBooks Online: Best for accounting and finance
QuickBooks Online is cloud accounting software designed for small businesses. It automates invoicing, expense tracking, basic payroll, tax calculations, and financial reports.​
Important automated features for craft businesses
- Invoices that recur and payment reminders: Send automated invoices and reminders to wholesale buyers or customers who have signed up for a subscription.
- Automating bank feeds: Link your bank account to automatically import transactions. All you have to do is review and sort them.
- Getting receipts: Scan your receipts on your phone, and the system will automatically read them and attach them to the right expense.
- Automating payroll: Set up automatic payroll with set schedules that include employee time and taxes in plans that support them.​
Most makers don’t like keeping track of their money, but money is what keeps a business going. QuickBooks Online takes care of a lot of the work for you and makes it easier to keep track of your taxes, loan applications, and talks with investors. Studies have shown that automating accounting can improve accuracy and save larger companies tens of thousands of dollars a year. Even for MSMEs, the time savings are significant.​
5. Zoho Inventory: Best for inventory management
Zoho Inventory is a cloud‑based stock and order management tool that helps SMEs handle inventory, orders, and shipping across multiple channels.​
Important automation features for craft businesses
Tracking stocks in real time: When you record a sale or purchase, your stock automatically updates.
Multi-channel selling: Functions with e-commerce platforms and marketplaces so that the amounts in your online store, Amazon, and other channels are always the same.
Order processes: Automatically move orders from picking to packing to shipping.Alerts for low stock and back orders: Get warnings previous to you run out of popular yarns, fabrics, or finished goods.​
Craft stock can be messy—raw materials, part‑finished pieces, custom orders, and ready‑to‑ship products. Business automation software like Zoho Inventory turns this chaos into a structured, tracked system, reducing stockouts and over‑buying.​
6. Automated knitting machines: Best for production
Digital patterns are used by machines such as Stoll CMS (for flat knitting) and Shima Seiki (for circular knitting) to produce garments and components with high accuracy and consistency. They are common in the production of knitwear, from small studios to larger factories.
Key automation benefits for craft manufacturing
- Consistent quality: Machines follow the same pattern every time, giving uniform size, tension, and finish.
- High volume with small teams: One operator can oversee multiple machines, significantly increasing output without adding many workers.
- Integration with planning and inventory: When combined with systems such as Zoho Inventory, you can align yarn usage and production plans with actual demand.​
Automated knitting machines can help you keep up with orders if you run a knitwear or textile craft business and have trouble doing so. They can turn your one-of-a-kind designs into large, reliable production runs without losing the essence of your brand. During the production stage, they become one of your most powerful tools for automating business processes.
7.Odoo and Katana: Best for order and production management
- Odoo is a modular ERP platform with apps for sales, inventory, manufacturing, accounting, and more.
- Katana is a modern manufacturing ERP/MRP focused on small makers and D2C brands, especially those doing in‑house production.
Key automation features for craft businesses
- Order‑to‑production workflows: When a customer order arrives, the system automatically generates production orders and updates inventory reservations.
- Material requirements planning (MRP): Helps you calculate the quantity of raw materials needed based on incoming orders and stock levels.
- Live production status: Track where each order is—planned, in production, finished, or shipped.
- Integrations with accounting & inventory tools: Odoo and Katana integrate with QuickBooks and Zoho Inventory, enabling end‑to‑end workflows.​
If you have trouble with late orders or lost tracking (“Which order is at what stage?”), An order/production system like Odoo or Katana lets you see all of your orders, materials, work in progress, and shipping in one place. This means fewer delays and happier customers.
8. How these five tools work together in a craft business
- A customer buys a sweater at a pop‑up shop. Square handles payments, updates inventory, and stores customer data.​
- The sale syncs with QuickBooks Online, automatically creating an accounting record.​
- Zoho Inventory reduces the stock count for that item and, if levels are low, triggers a restock alert.​
- Katana or Odoo generates a new production order, planning how many new sweaters to knit and how much yarn to use.
- Automated knitting machines knit the fabric according to digital patterns, delivering consistent pieces at scale.
This end‑to‑end automation eliminates manual entries at every step, reduces errors, and accelerates the cycle from design to cash.
9. How to choose the right tools for your craft brand
Where do I waste the most time? (Payments, accounting, inventory, or production?)
Do I sell more in person or online? (Strong POS systems like Square vs. inventory management systems with more features like Zoho Inventory.)
How hard is it for me to make? Simple assembly vs. multi-step manufacturing—if it’s complicated, tools like Katana and Odoo can help.
How much money do I have, and how comfortable am I with technology? (Choose one tool that solves your biggest problem and add more later.)
Look for tools that work well together. They are made for small businesses, not just big ones. Provide your team with clear guidance and tutorials so they can learn quickly.
10. Simple step‑by‑step plan to start automating
- Map your current process
- Draw the journey from order → production → packing → delivery → payment → accounting.
- Find bottlenecks
- Where do you see delays, repeated data entry, or frequent mistakes?
- Pick one area to fix first.
- For example, payments + sales tracking with Square, or finance with QuickBooks.​
- Start with basic automation.
- Turn on auto‑invoices, bank feeds, receipt capture, and simple inventory sync first.​
- Train your team
- Show them step‑by‑step how to use the tool; create tiny SOPs (checklists) so everyone follows the same method.
- Measure impact
- Track time saved, fewer errors, and faster order completion. Use these numbers to decide your next automation step.​
11. Common mistakes to avoid with automation
- Buying too many tools at once
- This creates confusion and costs without tangible benefits. Start lean.
- Automating a broken process
- Clean up your workflow first; then automate it.​
- Ignoring integration
- If tools cannot communicate, you still end up copying data manually. Choose tools with good integrations.​
- Skipping training and SOPs
- The best automation fails if people do not use it correctly—document simple, clear steps for your team.
12. Future trends in craft business automation
- Stronger integrations: Platforms like Zoho, Square, and QuickBooks are adding more connectors to enable seamless data flow across your stack.​
- AI‑assisted analytics: Systems will not only show your numbers but also explain them and suggest what to make or stock next.​
- Hyper-personalisation: Customer data from POS and online shops will drive targeted offers and loyalty programs tailored to individual buyers.​
For MSME craft businesses, this means greater power to compete with larger brands without sacrificing authenticity.
Summary and final thoughts
The best business process automation tools—such as Square for sales, QuickBooks Online for finance, Zoho Inventory for stock, automated knitting machines for production, and Odoo or Katana for order management—can transform an MSME craft business from fragile and manual to efficient and scalable.​
By reducing manual work, cutting errors, and connecting your sales, inventory, production, and accounting, these tools free you to focus on what truly matters: designing beautiful products, delighting customers, and growing your brand for the long term. Automation is no longer a luxury; it is a practical step toward sustainable success in the modern craft industry.
Frequently Asked Questions
Q-1. Why should a small craft business bother with automation?
Ans: Because it saves time, reduces errors, and provides clear metrics, it helps you grow faster without burning out or hiring a large team.​
Q-2. Is Square good for a tiny craft stall or home‑based seller?
Yes. Square is designed for small sellers; you can start with simple card readers and basic POS, and later expand to advanced features such as inventory and loyalty.​
Q-3. Do I really need QuickBooks if I already use Excel?
Excel works well in the early stages, but QuickBooks Online automates invoicing, expense tracking, bank feeds, and reporting, reducing errors and manual work.​
Q-4. How does Zoho Inventory help when I sell on multiple platforms?
It syncs inventory across channels (website, marketplaces, etc.), tracks orders, and provides real‑time stock levels so you don’t oversell.​
Q-5. Are automated knitting machines too expensive for a small studio?
They are a bigger investment, but for brands with growing demand, they can pay off by enabling larger, consistent production with fewer labor hours per piece.
Q-6. What’s the difference between Odoo and Katana for craft businesses?
Odoo is a broad ERP with many modules; Katana is more focused on small makers and manufacturing workflows, and is often easier to adopt if you primarily need production and inventory planning.
Q-7. Can these tools talk to each other?
Yes. For example, Zoho Inventory integrates with e‑commerce and finance tools; QuickBooks connects to POS and other apps; Odoo and Katana can sync with accounting and inventory systems.​
Q-8. How do I avoid paying for features I don’t use?
Start with a basic or free plan, test only the features you need, and upgrade gradually. Many tools have tiers for small businesses.​
Q-9. How long does it take to see results from automation?
You often see time savings within a few weeks—especially in billing, stock control, and order tracking—while larger production changes (such as new machines) may take months to demonstrate ROI fully.​
Q-10. Is my data safe in these cloud tools?
Reputable tools such as Square, QuickBooks, and Zoho use encryption, access controls, and compliance standards to protect your data. However, you should still set strong passwords, manage user roles, and enable security features.​

I am Indra Dhar, an entrepreneurial coach and mentor. Physics Professor turned social entrepreneur. I am dedicated to mentor business owners and professionals for business growth and enhance leadership skills through EQ to create an lasting impact. With my extensive experience of last 30 years I have helped thousands of women in craft sector to start their own business and create a mindset of financial freedom. As the founder of Handknit India, I have empowered more than 1000 women to live a life they desire.
