QuickBooks is a perfect solution for small to mid-size businesses when it comes to tracking sales & expenses, and transactions. This accounting software is very popular among its users in terms of exciting features and functionalities. QuickBooks inventory is one of these features that can be availed in both QuickBooks Online & Desktop. You should know the cost of items you purchased or sold whether you are working on QuickBooks or any other accounting software. QuickBooks inventory helps you in making the work done without putting many efforts.
QuickBooks Online inventory values will be automatically adjusted in the balance sheet. Your quantities of inventory will also be added automatically in QuickBooks Online. You don’t need to make efforts for it. You must know that QuickBooks Online uses the FIFO method to track inventory. However, QuickBooks Desktop versions use the average costing method to track inventory.
The following article describes the steps of how to add inventory in QuickBooks. Along with this, we have also provided you the reason why inventory management is essential?
Let’s check out the importance of tracking inventory in QuickBooks.
Importance of tracking inventory in QuickBooks Online
Go through the following points to know “why tracking inventory is important?”
- You can easily view the current hand quantities that need to consider and the products that require to place an order.
- By tracking the QuickBooks inventory, you can stay on top of what you have in stock.
- You can easily determine whether you are earning or losing money on each item. This will help you in making decisions that will be better for your business.
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How to add inventory in QuickBooks Online?
The steps to add inventory in QuickBooks online have been discussed here. You need to perform all of them one after another:
Step 1: Turn on QuickBooks inventory
- Click on Settings and choose Accounts and Settings.
- Now, you need to choose Sales.
- Open the Products and services section and select Edit.
- In the Sales forms, you need to turn on Show Product/Service column.
- You also have permission to turn on prices rule only in case of setting up flexible pricing for the things sold.
- After that, turn on Track quantity and price and Track inventory quantity on hand.
- Choose save and click on Done.
Step 2: Add Inventory in QuickBooks Online
To add on inventory in QuickBooks, we have listed the simple steps for you:
- You need to add any services that you offer to customers such as bookkeeping services or landscaping.
- After that, you have to add non-inventory items. The non-inventory items mean the things that you purchase but don’t add as inventory like nuts and bolts utilized at the time of installation.
- Make a package for any collection of services or products sold together. This prevents you from choosing one by one invoices or receipts.
Steps 3: Track sold products
After setting up your inventory, you require to track the products sold by you. These are the ways to do so:
- Make an invoice in the case of getting paid later.
- Add a sales receipt when your customer has paid on the spot.
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Step 4: Restock your Inventory
You will get the time to restock by QuickBooks automatically. Firstly, you have to order inventory right in QuickBooks. After that, manage the things received from vendors. This enhances the quantity on hand by the number of items received by you.
In the end, you can use reports to verify the inventory status.
Expectantly, the aforementioned blog provided you the required information about the “how to add Inventory in QuickBooks”. You can follow the steps to add inventory by reading the blog. In case, you did not find the article helpful and want more information about the same, then you are free to call us at any time by dialing our QuickBooks Support Phone Number 1-805-257-5030. Our team of experts will assist you to resolve every issue related to QuickBooks.