Incorporating the products and services offered to customers is among the initial actions to establish successful business accounting, especially for newcomers to QuickBooks.
Whether you’re a well-established company or just starting, understanding how to add products and services in QuickBooks Online is an important aspect. This will boost efficiency, provide insights into your company’s financial health, and allow smoother transaction management within your business.
We will help you with everything from adding new products and services to managing inventory and fine-tuning pricing details. This article will explain to you how you can include services and products in QuickBooks Online allowing you to enjoy all its advantages.
Different Types of Products and Services
- Inventory: Products that you sell and record the amount sold. Advanced versions of QuickBooks both have inventory features.
- Non-Inventory: Products or items you purchase or sell but don’t want to track the quantities of them. For example, the bolts and nuts that you use for installations but don’t sell directly.
- Services: The services you offer to the customers.
- Bundle: It is a collection of products or services that you offer as a single unit. For example, a gift basket.
to resolve your query in no-time.
Steps to Add, Track, and Manage Product or Service in QuickBooks Online
Here are the steps you need to follow:
Step 1: Add a New Product or Service
A product or service only needs to be created once. You can add them to sales forms as often as necessary once you’ve created them.
- Select Products & Services in the Sales section.
- Choose New.
- Choose either Service or Non-Inventory.
- If you track the product or service, enter a Name along with an SKU for the same.
- Choose the category that most accurately describes your services from the dropdown menu under the Category section.
- Verify that the checkbox for “I sell this product/service to my customers” is checked if you are selling the item selected.
- Put a description in the “Description on Sales Forms” field. Your customers will see the same on their sales form.
- In the Sales price/rate field, enter an amount for your product or service.
| Note: You can leave the Sales price/rate field if you bill based on a variable rate for services. You can add the price when you fill out the sales receipt or invoice. |
- From the Income account ▼ dropdown, choose the account you wish to use to track the sale.
| Note: To create a new income account, select + Add new. Alternatively, you can use an income account that QuickBooks has already set up for you. |
- Sales tax is automatically applied in the sales tax section based on the user’s location. Select Edit sales tax for more detailed options or to remove the product or service from taxation. Then, take one of the following actions based on the good or service:
- Choose Nontaxable if the product or service is exempted from taxes. Then, choose Done.
- Use the Search field or Browse All to locate and choose a more specific product or service type if the item has a unique tax rate. Then, choose Done.
- Once finished, choose Save and Close.
The product and service can now be added to other sales forms, expense reports, sales receipts, and invoices.
Step 2: Add Purchasing Information about the Products or Services
To keep track of the amount you spend on a product or service follow the steps mentioned below:
- Access Sales and choose Products & Services.
- Select Edit in the Action column after locating the good or service on the list.
- Choose “I purchase this item/service from a seller.”
- Include a description. This will appear on purchase orders, bills, and other forms that you submit to suppliers.
- Add the Cost.
| Note: If the price changes, you can still input the revised price when it comes time to purchase the supplies. |
- From the Expense account ▼ dropdown, choose the account you use to monitor the price of the goods you sell.
- Choose the vendor of your choice.
- After finishing, choose Save and exit.
Step 3: Track and Manage the Products and Services you Sell
This is how to begin:
A. Edit a Product or Service in QuickBooks Online
From the Products and Services menu, you can examine and modify any of your product or service items.
- Access Sales and choose Products & Services.
- Find the product or service that you wish to change.
- In the Action column, choose Edit.
- Make the necessary changes.
- After finishing, choose Save and exit.
B. Change a Product or Service Item Type in QuickBooks Online
Don’t worry if you unintentionally add a service item as an inventory item or an inventory item as a non-inventory, you can easily change it by following the below steps:
- Find the Settings icon and choose Products & Services in that.
- Locate the non-inventory or service item that needs to be modified.
- In the Action column, choose Edit.
- Click on Change type.
- Choose between Inventory, Services, or Non-Inventory.
- To set the item as either an inventory item or a non-inventory or service item, follow the prompts.
- Once finished, choose Save and Close.
C. Delete a Service or Product in QuickBooks Online
Items can be marked as inactive to remove them from lists, financial reports, and sales forms. This simply hides the item and does not remove it permanently.
- Select Products & Services under Sales.
- Locate the products or services that you wish to modify.
- Choose “Make inactive” from the Action column’s ▼ dropdown menu, and then click “Yes” to confirm.
D. To Reactivate an Item Later in QuickBooks Online
- Select Products & Services under Sales.
- Click the Filter icon.
- Choose All from the Status ▼ dropdown menu, then click Apply. All of your items, both active and inactive, will be displayed there.
- Locate the service or product you wish to reactivate.
- Choose Make Active from the Action column.
Conclusion:
If you intend to maintain transaction data and operational records for your business, mastering skills in QuickBooks Online Services and Products is essential. This article has provided you with the foundational knowledge needed to effectively add, manage, and organize your business lineup within QuickBooks Online. With these skills, you’ll be equipped to successfully handle your business operations and ensure accurate record-keeping using QuickBooks Online.
Developing this skill will guarantee the accuracy and reliability of your company’s financial data and enable you to make optimal plans based on them that will contribute to your company’s expansion and success.
If you still have any questions or need help with How to Add Products and Services to QuickBooks Online, you can reach out to QuickBooks Online Assistance at the toll-free number +1-855-875-1223.
Frequently Asked Questions
Choose “Import” from the Products and Services menu and follow the instructions provided to upload a CSV file with your data to import goods and services into QuickBooks Online. Allow the easy addition of your products and services to your account by mapping the fields to QuickBooks Online, reviewing the import summary, and confirming it in the end.
Classifying goods and services in QuickBooks Online involves allocating them to the proper expense and income accounts. Click on the Products and Services menu, choose “New,” and enter the item’s name, description, and cost. Then, select the expense account for purchases and the income account for sales. Categorization helps track revenue and expenses related to each product or service and guarantees accurate financial reporting.
To view the Products and Services list in QuickBooks Online, click the “Sales” or “Purchases” tab in the left navigation menu, then choose “Products and Services.” As an alternative, you can quickly find it by typing “Products and Services” into the top search bar. You can manage, add, edit, and categorize your business’s products and services on this list to provide easy tracking and reporting.
To make updates to QuickBooks Online’s products and services, go to the “Sales” tab and choose “Products and Services.” Find and click on the item you want to update. Update any relevant information, like the price or description, and click “Save” to make the changes you made. For precise tracking and reporting, QuickBooks Online automatically updates your financial records to reflect these changes.
Open QuickBooks Desktop and select the “Lists” menu to choose products and services. Once “Item List” is selected, click the “Item” drop-down menu and select “New.” Add information about the item, including its name, description, and price. Give the right accounts for earnings and outlays. The item will be added to your list of goods and services when you click “OK” to save it.
In QuickBooks Online, go to the “Sales” tab and choose “Products and Services” to add inventory items. After selecting “Inventory” as the type, click “New“. Enter the item’s name, description, and available quantity in the fields provided. After designating accounts for income and expenses, save the item. Inventory levels will be tracked by QuickBooks Online and automatically update as transactions take place.
