Are you ready to streamline your bookkeeping with QuickBooks Online 2024? Buckle up because setting up your products and services list is about to get a whole lot easier. In fact, it’s so simple that you might think it’s a crime – well, unless you’re doing bookkeeping for shady activities, but let’s steer clear of that!
Step 1: Test Drive QuickBooks Online
Head over to your browser and search for QuickBooks Online Test Drive. Look for results with “intuit.com” in the URL, as Intuit is the proud owner of QuickBooks. Select the United States version of the software and go through the verification process to prove you’re not a robot.
Step 2: Opening Financial Statements
Once you’re in, open up major financial statement reports. Right-click on the balance sheet and profit loss reports, ensuring you’re looking at the right time range for your business.
Step 3: Setup Process
Navigate to the left-hand menu, right-click on the balance sheet, and open it in a new tab. Similarly, open the profit loss statement in a new tab. Adjust the time range to 2023 and refresh the reports. This sets the stage for your data input process.
Step 4: Products and Services Lists
Most users access the products and services list through the left-hand menu, under Sales and then Products and Services. However, we’ll take a different route – click on the cog icon at the top, then Lists. Here, you’ll find all your foundational items, and specifically, we’re diving into the Products and Services section.
Step 5: Adding Products and Services
Now, let’s add your fundamental building block items. These are the things you’ll be selling – the items you populate in invoices or sales receipts. Creating these items beforehand makes the data input process smooth and brainless.
Step 6: Understanding Inventory Items
Products and services can be categorized into inventory items, non-inventory items, services, and even bundles. The choice depends on the nature of what you sell. For instance, inventory items are products you track quantities for, while services have no inventory.
Step 7: Sales Tax Considerations
Remember, your setup of products and services is also crucial for sales tax calculations. Turn on taxes, assign taxability to items, and make sure to categorize customers as exempt or non-exempt based on sales tax regulations.
Step 8: Dive into the Details
When adding items, consider details like SKU, categories, sales price, income account, and sales tax. This information not only makes data input a breeze but also ensures accurate financial reporting.
Step 9: Test Your Setup
Create a sample invoice to test your setup. Add items, see how sales tax is applied, and understand how QuickBooks Online processes transactions in the background.
Step 10: Ongoing Usage
As you continue using QuickBooks Online, regularly revisit your products and services list. Update or add items as your business evolves, ensuring your financial records stay accurate.
Congratulations! You’ve successfully mastered the setup of products and services in QuickBooks Online. With this foundational knowledge, your bookkeeping journey just got a whole lot smoother.
Feel free to modify and expand upon this structure based on your preferences or any additional details you’d like to include in your blog.