QBO Overview

QuickBooks Online is a cloud-based multi-functional accounting software suite aimed primarily at small and growing businesses. Its versatile framework makes it easy for users to manage and oversee a wide range of accounting tasks, including monitoring cash flow, reviewing transactions, categorizing expenses, checking invoice statuses, and staying on top of payroll and inventory.
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Using QuickBooks Online to Create Product Records

QBO Overview
July 29, 2020

Use QuickBooks Online for tracking products and services that you sell.

While businesses that sell one service or one kind of product will find it easy track inventory and sales, this is not the case with most businesses that offer multiple products and services. Effective tracking is essential for sales receipts, invoices, and managing inventory.

When you use QuickBooks Online, it tracking and recording tools make the job easy and efficient. You can create records for services and products and always know how your business is doing.

How to Get Ready

In order to do effective tracking with QuickBooks Online you need to do some setup first for your product records. Start by clicking the gear icon on the right and upper side of the screen. Then click Your Company Account and setting, and Sales. This takes you to Products and Services which is shown below.

In QuickBooks Online you will find a section devoted to Products and Services within Account and Settings

To see your options, click Products and services. Check or uncheck the box in front of any entry to turn it On or Off. Clicking the question mark in a circle will give you an explanation of each one. Then click Save and close the window by clicking the upper right corner X.

Creating Records

When you want to enter service and product data click on the gear icon to the upper right and then choose Products and services. At the beginning this is a blank table because you have not entered anything. Your job is to enter the appropriate data for each created record. At the top of the screen there are Low Stock and Out of Stock notices within colored circles. Each of them has a number by it so that you can quickly see a list of what you need to order.

To start filling in this table, click New to the upper right side. You will then see a vertical panel that asks you which sort of record you need to create. Here are the options:

Inventory - Physical items that you sell and that you want to track

Non-inventory - Products you buy or sell but need to track

Service - Services that you sell such as landscaping or legal representation

Bundle - Any groupings of services and products that you sell together. Examples would be things like software sold along with computer training.

Here we show you how to create an inventory item. First, so click on Inventory and enter the appropriate Name in the corresponding field along with a photograph if you wish. Enter the SKU if one has been assigned. You may wish to divide your products by primary categories as well as sub-products and services (such as Writing Instruments for Pens, Pencils, Markers, etc.). You can also skip if this part.

Use QBO to Prevent Inventory Shortfalls

Go to the next section and enter the Initial quantity on hand. This is your baseline so enter exact number for as of (current) date. Then you will set your reorder point so that QuickBooks will notify you by triggering a Low Stock alert. This will keep you from running out of important items and losing sales.

Make sure that Inventory asset account is already be set to Inventory Asset. Then enter a short Description as well as the product’s Sales price/rate which is what you charge customers. The Income account should remain set at Sales of Product Income. Next choose a Sales tax category. If you need help setting up sales taxes in QuickBooks online and need help, feel free to contact us.

Enter the description that you want to appear on purchase forms in the Purchasing Information field as well as your cost for the product. For the Expense account, this should be Cost of Goods Sold. Then choose a Preferred Vendor if you wish and Save.

Although you are not required to fill in all of the fields for service and product records, we suggest that you fill each one in as completely as possible.

We will take a look at how to use product and service records in QuickBooks Online next month. Meanwhile, contact us if you need any help with the setup.

learn more
about our services
Profit First Strategies helps business owners experience profit.

QuickBooks Online

QuickBooks Online is a cloud-based multi-functional accounting software suite aimed primarily at small and growing businesses. Its versatile framework makes it easy for users to manage and oversee a wide range of accounting tasks, including monitoring cash flow, reviewing transactions, categorizing expenses, checking invoice statuses, and staying on top of payroll and inventory.
Profit First helps you experience profit.

QBO Overview

QuickBooks Online is a cloud-based multi-functional accounting software suite aimed primarily at small and growing businesses. Its versatile framework makes it easy for users to manage and oversee a wide range of accounting tasks, including monitoring cash flow, reviewing transactions, categorizing expenses, checking invoice statuses, and staying on top of payroll and inventory.
Ronald B. Allen
CEO, Profit First Professional, Fix This Next Founding Advisor
Principle of an accounting firm that’s committed to educating business owners on their financial health, providing a trans-formative strategy and helping them experience their profit!