Creating products in QuickBooks Online ensures accurate sales tracking, inventory management (if applicable), and reporting. Here's how to set them up:
1. Access Products and Services
- Click the Gear icon in the top right corner of your QuickBooks Online dashboard.
- Under the "Lists" section, select Products and services.
2. Create a New Product or Service
- Click the New button in the upper right corner of the Products and Services page.
3. Choose the Item Type
- Inventory: Select this for physical products you buy, sell, and track quantities of. QuickBooks will help you manage stock levels.
- Non-inventory: Use this for products you sell but don't track quantities for (e.g., items you buy as needed to fulfill orders).
- Service: Select this for services you offer (e.g., consulting, design, repairs).
- Bundle: This option lets you group multiple products or services together as a single package deal.
4. Enter Product/Service Details
- Name: Provide a clear, descriptive name for your product or service.
- SKU: (Optional) If you use SKUs for inventory management, enter the SKU here.
- Category: Choose a category from the dropdown menu or create a new one. Categories help organize your products and services for reporting.
- Sales Information:Selling price: Enter the price you charge customers.
- Income account: Select the income account where revenue from this product/service will be recorded.
- Sales tax category: Choose the appropriate sales tax category.
- Purchasing Information (for inventory and non-inventory items):Cost: Enter the cost of the product.
- Expense account: Select the expense account used to track the cost of goods sold.
- Preferred vendor: (Optional) If you consistently purchase this item from the same vendor, select them here.
5. Add a Description (Optional)
- You can add a detailed description of the product or service. This might include specifications, features, or benefits.
6. Save Your Product/Service
- Once you've entered all the necessary information, click Save and close.
Tips for Managing Products and Services
- Import from a spreadsheet: If you have a large list of products or services, you can import them from a spreadsheet to save time.
- Use images: Add images to your products and services to make them visually appealing on sales forms.
- Regularly review and update: Keep your product and service information up to date, especially pricing and stock levels for inventory items.
Need Assistance?
If you're unsure about any of the steps or need help setting up products and services in QuickBooks Online, don't hesitate to reach out to Fred Lundin CPA. We're here to provide expert guidance and ensure your QuickBooks Online is working effectively for your business.
