# **How to Set Up Products & Services in QuickBooks Online?**

QuickBooks Online makes it easy for small business owners to **track sales, manage inventory, and invoice customers** by using the **Products & Services list**. Setting up your products and services properly ensures accurate reporting, better inventory management, and seamless accounting.

## **Why You Should Set Up Products & Services in QuickBooks Online**

Properly setting up products and services helps you:

* **Track sales and income** accurately
* **Manage inventory** in real-time
* **Generate detailed reports** for better business decisions
* **Simplify invoicing** by selecting items quickly
* **Ensure tax compliance** by assigning correct tax codes

💡 **Expert Tip:** Even service-based businesses benefit from listing services to track profitability per project or client.

## **Step 1: Access the Products & Services List**

### **Steps**

1. Log in to QuickBooks Online
2. Click **Sales** in the left-hand menu
3. Select **Products and Services**
4. Click the **New** button in the top-right corner

This will open the setup screen for a new product or service item.

## **Step 2: Choose the Type of Item**

QuickBooks Online supports **four main types**:

1. **Inventory** – Track quantity on hand and cost of goods sold.
2. **Non-inventory** – Track items sold but do not track quantity.
3. **Service** – Track services you provide, such as consulting or repair.
4. **Bundle** – Group multiple products or services into one item for easier sales entry.

💡 **Pro Tip:** Use **Inventory** for physical goods you stock, and **Service** for labor or consulting.

## **Step 3: Enter Item Details**

Fill in the item fields carefully:

* **Name** – The name customers will see on invoices.
* **SKU or Product Code** (optional) – Helps track items internally.
* **Category** – Organize similar products or services.
* **Description** – Auto-populates on invoices.
* **Sales Price/Rate** – Amount charged per unit or service.
* **Income Account** – Usually “Sales of Product Income” or similar.
* **Expense Account** – For inventory items, assign **Cost of Goods Sold**.
* **Inventory Asset Account** – Required for tracking stock value (inventory items only).
* **Quantity on Hand** – For inventory items.
* **Reorder Point** – Optional alert when stock is low.
* **Taxable** – Select if sales tax applies.

## **Step 4: Save the Item**

Once all information is complete:

1. Click **Save and Close** to exit
2. Or click **Save and New** to add another item

Your product or service is now ready to use in invoices, sales receipts, and reports.

## **Step 5: Edit or Manage Existing Products & Services**

* Go to **Sales > Products and Services**
* Click **Edit** under the item you want to update
* Update pricing, description, or accounts as needed
* Click **Save** to apply changes

💡 **Expert Tip:** Review your list periodically to ensure prices, inventory, and tax settings are accurate.

## **Tips for Optimizing Products & Services in QuickBooks Online**

* **Use clear, descriptive names** to avoid confusion.
* **Assign categories** for better reporting and filtering.
* **Track inventory** carefully to prevent stockouts.
* **Set correct tax settings** to avoid compliance issues.
* **Use bundles for package deals** to simplify invoicing.

## **Real-World Example**

**Scenario:**
A retail shop wants to track both physical goods and services.

**Setup:**

* Inventory: “Blue Gel Pens” with stock tracking
* Non-inventory: “Gift Wrapping Service”
* Bundle: “Stationery Set” (includes pens, notebooks, and wrapping)

**Result:**
The shop can now invoice customers quickly, track inventory levels, and run reports to monitor sales and profitability by item.

### 📦 **Need Help Setting Up Products & Services in QuickBooks Online?**

Streamline your accounting and inventory management with expert QuickBooks setup.

📞 **Call Now: 866-593-4750**

## **FAQs**

### **Can I track inventory in QuickBooks Online?**

Yes. Inventory items allow you to track quantity on hand, reorder points, and inventory value.

### **What is the difference between inventory and non-inventory items?**

Inventory items track stock quantity and cost, while non-inventory items track sales but not stock.

### **Can I set different sales prices for the same product?**

Yes. Use price rules or create multiple versions of the product for different pricing tiers.

### **Do services need inventory accounts?**

No. Services only require an income account and do not track physical inventory.

### **Can I import products and services in bulk?**

Yes. QuickBooks Online allows CSV imports to add multiple items quickly.

## **Conclusion**

Properly setting up **products and services in QuickBooks Online** ensures accurate sales tracking, smooth invoicing, and effective inventory management. Whether you sell physical products, services, or bundles, following these steps helps your business stay organized and profitable.

📞 **Call 866-593-4750 today** for expert QuickBooks setup assistance and streamline your accounting workflow.

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