QuickBooks Online (QBO) makes managing your business’s products and services simple. Whether you sell physical goods or provide services, creating accurate product records in QBO is essential for tracking inventory, pricing, and revenue. In this guide, we’ll cover the advanced aspects of product records in QuickBooks Online, including customization, tracking, and using reports to monitor business performance.
1. Adding Products and Services in QuickBooks Online
Step-by-Step Guide to Add Products
- Log in to QuickBooks Online: Start by navigating to the “Sales” menu and selecting “Products and Services.”
- Click on “New”: This button lets you create a new product record.
- Choose Product Type: Select between inventory, non-inventory, or service.
- Inventory: For goods you buy and sell, tracked in stock.
- Non-inventory: For goods you sell but don’t track as inventory.
- Service: For any services you offer.
Required Fields for Product Setup
- Name: Enter a unique name for your product or service.
- SKU (Optional): Use stock-keeping units to simplify inventory management.
- Category: Organize products into categories for better tracking.
- Sales Price/Rate: Add the price you charge customers.
- Income Account: Choose an account to track income from the product.
2. Advanced Customization Options
QuickBooks Online allows you to customize product records further to fit your business needs.
Adding Product Descriptions
- Use the “Description” field to add details about the product. This information will appear on invoices and receipts.
- Include keywords that describe the product for easy searching.
Tracking Inventory Levels
- Activate inventory tracking by selecting “Track Quantity on Hand.”
- Enter the initial quantity and cost of goods sold (COGS) to keep accurate records.
Price Rules and Discounts
- Set up pricing rules for bulk purchases or special promotions.
- Add discount options to attract more customers and streamline sales.
3. Importing Products in Bulk
For businesses with a large product catalog, manually entering data can be time-consuming. QuickBooks Online simplifies this process with a bulk import feature.
Steps to Import Product Records
- Prepare your product list in a CSV file. Ensure fields like name, category, and price are correctly formatted.
- Go to the “Products and Services” menu and click “Import.”
- Upload the CSV file and map the fields.
- Review the data and complete the import process.
4. Managing and Updating Product Records
Editing Existing Records
- Navigate to the “Products and Services” list and select a product.
- Click “Edit” to update pricing, descriptions, or inventory details.
Deactivating Obsolete Products
If you no longer sell a product, deactivate it to keep your records clean. Deactivated products won’t appear in active lists but remain in your database for historical reporting.
Setting Reorder Points
Enable reorder alerts to maintain sufficient stock levels. QBO notifies you when inventory drops below the specified point.
5. Utilizing Reports for Product Insights
QuickBooks Online offers detailed reports to analyze product performance.
Essential Product Reports
- Sales by Product/Service Detail Report: Understand which products generate the most revenue.
- Inventory Valuation Summary: Track the total value of your inventory.
- Profitability Reports: Evaluate the profitability of each product.
Customizing Reports
- Filter reports by date, product category, or location for specific insights.
- Export reports to Excel for further analysis.
6. Syncing with Third-Party Tools
Integrating third-party apps with QuickBooks Online can enhance your product management.
Popular Integrations
- Inventory Management Tools: Like TradeGecko or Fishbowl to track inventory in real-time.
- eCommerce Platforms: Such as Shopify or Amazon for seamless sales tracking.
Benefits of Integration
- Reduce manual data entry.
- Gain better visibility into sales channels.
- Streamline order fulfillment.
7. Best Practices for Product Management in QuickBooks Online
- Regularly Audit Inventory Levels: Avoid discrepancies by auditing inventory monthly.
- Update Pricing Annually: Reflect market changes by revising product prices.
- Train Staff: Ensure employees know how to use QuickBooks Online for efficient product tracking.
8. Troubleshooting Common Issues
Even experienced QuickBooks Online users may encounter challenges.
Product Not Appearing in Invoices
- Ensure the product is active and linked to the correct income account.
Incorrect Inventory Counts
- Verify purchase and sales transactions for errors.
- Adjust inventory manually if necessary.
Data Import Errors
- Check for formatting issues in the CSV file.
- Use the sample template provided by QuickBooks to structure your data.
By mastering these advanced product management techniques in QuickBooks Online, you can optimize your inventory, streamline operations, and drive profitability. Stay consistent with these practices to make the most out of your QuickBooks Online subscription.
