 QuickBooks Online 2023. Enter service items. Get ready to start moving on up with QuickBooks Online. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. We also have open in another incognito tab the free QuickBooks Online test drive sample company which if you want open at the same time as your company file you would need to open in an incognito window or another browser. If using Google Chrome you could find the incognito mode by going to the three dots new incognito window and then search for QuickBooks Online test drive. We will be using the sample company file to look at the differences between the accountant view which is what the Get Great Guitars file is in and the business view which is what the sample company is in. You can toggle back and forth between the two views by selecting the cog up top and switching to the accountant or business view. Also note that we're zoomed in a little bit you can hold control and scroll up or down to zoom. I'm currently at the 125% on the zoom in. Thus far we have set up a new company file. We've looked at some company preferences located at the cog up top in both the business and accounting view. We have a chart of accounts although it's somewhat of a generic chart of accounts thus far it having been provided by QuickBooks when we set up the company file located in the accountant view under the accounting tab on the left hand side and then the chart of accounts. If under the business view it would be under the bookkeeping tab and then the chart of accounts. Now the chart of accounts is going to be something that we're going to have to modify because the chart of accounts is going to have a whole lot of accounts is the way the QuickBooks Online is currently set up. What we want to do now is look at these balances that are our beginning balances that we talked about last time which we're going to say these are the balances at the end of the prior accounting system 1231-22 the balance sheet accounts that I'd like to put in our accounting system as of 1231-22 so that we can start our new accounting system on January 1st 2023. So I need to have at least these accounts into our chart of accounts so the general rule for the chart of accounts as I add these accounts is if there's an account already here that is the same as the account that I want to be adding then of course I'm going to use the account that is already here. If there is not but there's a similar account then I'm going to try to change the name possibly of the account to be appropriate and fit my needs instead of having two accounts that are very similar in name which will confuse the data input and then as after we do like two months of data input with that strategy then I would go back into the chart of accounts and look at those accounts that I'm not using and then try to clean up my chart of accounts making those accounts inactive. So at this point in time we want to look at these accounts and add them into our system and and then change the chart of accounts as needed. So right now we're going to be looking soon at the inventory assets which have an added complexity of inventory items and we're going to kind of lead into that by first looking at service items. In other words we'll pick some of the harder accounts firsts that have these sub ledgers that become more of a problem that is with inventory if you're tracking inventory within the system that is also going to be the same with the accounts receivable which means you have to have customers that are kind of attached to it with a sub ledger and the accounts payable. So we're going to start leading into kind of the inventory that we're going to be adding into the system and the way we add the inventory items into the system is we have to add the actual inventory items if we're using a perpetual inventory system within QuickBooks and the cost of those items which the system can then make into and determine the ending balance of this 2008-96 the other side going to the equity. Now to lead into that though we're going to start with service items. Service items don't have an inventory component but they're going to be added in a similar fashion and they're going to be easier to add. So if I close this out the service items if I go to the left hand side back to the dashboard note that when we make a sale of items if I go to the plus button up top we make a sale with invoices and we make a sale with the with the sales receipt typically. If I was to open an invoice then the things that we sell are going to be down here in the products and services. What we want to do as we add the invoices is make it as easy to populate as we can. We can imagine if you're at a check register of the grocery store you can check out your own stuff basically by just scanning it. That's how easy we want the data input to be. We would like a checker to be able to input it basically we would like to be able to input it ourselves even if it's our own bookkeeping we would like to make the items as easy as possible to do the data input. That means that this section the items is what we have to add. Now if they're inventory items that we're tracking in the system then we also want the inventory to be adjusted on a perpetual inventory system if we're using a perpetual inventory method. But for now we're going to start off with the service items which don't have any inventory component to them but the items are set up in a similar fashion as inventory items. So they give you the default of like hours here hours late fees and services. These are generic items which are fine for some businesses. I mean you might you might be in a bookkeeping business or a law firm and you're just going to charge an hourly rate say this is how many hours and charge a rate for that. However even in a system that is traditionally an hourly rate system if you can bill in some other way for example with bookkeeping if you're able to say hey look I'm going to bill you by how many transactions I have if you're between 25 and 50 transactions I charge you this much if you're between 50 and 100 transactions I charge you this much. If you could do something like that it makes the billing process a lot easier to go through. So it would be great if you could set up your items so that you can make the billing process as easy as possible. Okay so we're going to we're going to sell actually guitars do you want to leave without saving we're going to sell guitars as one of our primary items and get great guitars but we'll also set up service items we'll set up guitar lessons later and we'll set up other kind of generic service items so we can see the differences of revenue generation with a service item versus an inventory item. So now this is going to be our list of items that we're going to enter in the system and they're kind of generic and they sound more like an auto an auto shop than a guitar shop but we're just trying to enter some generic items so you can see how the items can be entered into the system. Note that you can enter the items as you as you enter an invoice for example so if I went back on over here I could I could as I'm entering an invoice enter the service item add a new service item here but I don't typically want to do that as a general rule I want to have the items set up so the entering of the invoice is easy I just pick an item I don't have to set up the item the setting up the items is the behind the scenes thing that's a little bit more complex typically or if I close this out and note what the items are located through under the sales area which I would call like the customer cycle and then they're under products and services this is in the accountant view if you're in the the business view they would be under the get paid and pay area and then they're under the products and services there so same stuff just a different location on how to get in there and then once we're in here we can close up the hamburger and we can add items by saying new so if you add a new item then you have your choice of inventory item non-inventory items service item or bundle inventory items it says your products you buy and or sell and that you track quantities of meaning we're going to track the units not just the not just the dollar amount non-inventory products you buy and or sell but don't need to or can't track the quantity so we're not going to be tracking the quantity of the units which is that added level so it's kind of like a service item and then service item services that you provide to customers that's what we're going to do here we don't need to deal with inventory with regards to the service items and so that's where we'll start and then we'll go into the inventory items bundle a collection of products and or services that you sell together so you can bundle them up all right closing this back out just to see what they have thus far they've got these three items those are our generic items we saw in the drop down of the invoice so i could add an item one at a time by saying new and then service item and then put the name of the item it probably wouldn't have a number if it's a service item a category means that i can have items of a similar nature categorized under a subcategory so if it was guitar lessons by different instructors maybe i have them under the category of guitar lessons and then i sell this product to my customers the description this is what's going to show up on the invoice and sales receipts when we populate it the rate and then we've got the income account notice that it's generically set up here to go to a service's income account this is a gl account that that is on the general ledger that we just we looked at the general ledger so that's a generic service type of account which looks appropriate for us and then i purchased this product no i don't now we could add these one by one or if we're pulling this in from another accounting system and i have a list of items that we want to do at the same time we could import this importing process can be done in a lot of these areas like setting up your customers setting up your items and setting up your inventory service items and your vendors so i'm gonna say okay let's say i hit the drop down and say import if i do an import option here's what we have first time importing products or services all your products and service information must be in one file the top row of the file must contain a header title for each column of information required fields if you're importing inventory then product name product type quantity and quantity as of date are required if you're importing services or non inventory items the name of the item is the only required field now this this is selected a csv item here uh and this on this side we've got the google sheet so over here csv is is like an excel file it's like a comma delineated file but you can open it in excel with it basically looks like an excel file with no formatting to it now we can open up their sample so a good way to do this often time is to open up the sample which shows up down here if you're in google chrome it'll typically open up in uh in an excel worksheet so i'm going to say enable and then if i have my information that i got from another accounting system like this then i really all i really want to do is populate the headers to fit to to fit right so i can i what i'd like to do is line up the proper headers so that it will line up when i import it into the system it won't get confused because i use different header names then they have formally used so what i'll do is i'll just modify their template here and and then enter my data into it so i'm going to change the headers to line up to what my headers are and then i'm just going to copy and paste my data into this excel worksheet and use it to upload so let's i'm going to delete this one all together i'm going to delete this and then and then let's look at what we have here so what i have is the is the item name products and services so product service name product and service description let's keep that the sku i don't have one so i'm going to delete the type is going to be service for us so let's keep that line the sales price uh so we need that line income account i think we're going to need that line and then the purchase description is uh we don't need that because it's a we don't need the purchase cost the expense account we don't need so i'm going to delete those it's not inventory so i'm going to go i'm going to put my cursor on the f and then reorder point don't need inventory asset don't need because it's a service item that's why this is a simplified intro into the inventory which we'll do next time quantity on hand we don't need so i'm going to delete that and then if i go back to the right we've got the product service name i'm going to delete these and i'm just going to copy my product and service names which i put here i'm just going to copy these either generic things obviously so they're kind of don't and then i'll put them in here and then we got the sales description which i'm going to just say is the same so this is what this description that's going to show on the invoices and sales receipts i'm just going to copy this put it down there paste it and then i didn't have something for the type but the type is going to be a service item it's not an inventory items they're service items so i'm just going to copy this and paste it down and delete these two and then the sales price i'm going to pick that up for my data so i had these so i'll copy those and put that on the sales price and the income account i think they had an account called service for the income account that's the account that will be hit every time we enter the information to the system and i think there was a tax there should be a tax account which i didn't see whether it's taxable or not and i'm going to say non-taxable and see if they'll able to pick that up because it's non-taxable meaning not subject to sales tax okay so then i think that's good i'm going to save this i'm going to say file save as i'll put it on my desktop somewhere i'm going to say it's going to go to my desktop i'm going to put it into my quickbooks online file get great guitars and i'm going to call it service items and then save it and okay continue i think this is like an old excel file is what they're trying to say there so i'm going to i'm going to close it out now and see if i can import it into the systems i think i have everything i need the headers are proper now because i used their headers except this one is a little iffy we'll see what it does with that okay so let's test it out i'm going to close it up and then i'm going to browse and look for that file that i just did which was on the desktop it's on quickbooks online it's get great guitars service items it's an excel file which is appropriate for this side or it could be a csv so i think i'm good there so i'm just going to go okay next and so now it's trying to line up all the categories so these are the header categories that are possibly available when you enter the items these are my headers and they should line up hopefully because i copied their names so this is what they have this is what on what was on my excel sheet it lines up perfectly great this one lines up perfectly great this one lines up perfectly great because i used their header names sales price lines up perfectly and then the income account lines up perfectly and then that tax thing where did the tax thing go it looks like they don't have the tax option here to see if it's taxable or not so that's why i didn't have the header in the sheet so okay we'll have to deal with the tax separately possibly so let's go ahead and say next and so now it's going to give us another sheet which give us the information the the items in red or questionable items here right so we've got the name so there's the names that we set up that looks right and then we're not we're not buying them or tracking the inventory items there's no number there the type looks good as a service item sales description looks good price looks good income account i said service and they're having an issue with that so i'm looking for an income account service income let's use that one now i'm going to right click on the tab up top and duplicate it pull that to the left and then i'm going to go down to my chart of account i'm going to close this out over here and go down to my chart of accounts under the accounting tab chart of accounts if you were under the business view that would be under the bookkeeping tab and the chart of accounts and what i'm looking for is an income statement account that's appropriate now if they don't have one that's appropriate then i would make one up but i can see down here they've got service a fee income so i'm going to keep i'm going to use that one as my income account if i didn't like the name i'd change the name of it and then use that account basically would be my my idea so i'm going to go back to the back to the other tab and say okay i'm just going to change all these to the service income account boom service income account boom service income account okay and then we don't really need an expense and then the quantity i'm just clicking on them just to get rid of the red there shouldn't need a quantity because we're not we're not talking about inventory no reorder point this is not really necessary because we're so it should be good now the as of date shouldn't really matter but i'm trying to get it at the it will matter later for the inventory and i want it in there as of the end of last year the end of last year so if there wasn't a journal entry it doesn't affect the current period there won't be this time but there will be when we get to the inventory items and this is a precursor to the inventory so let's say import and see what it does so four out of four successfully imported boom that's what we like four for four four for four okay so if i scroll down there we have them so here's our here's our service items if i go into edit them now so we've got the service items look good all right and so now uh when i populate a invoice if i hit the well i hit that i can hit the plus up here and then go to the invoice now i can i have more options to be populated in the invoice now i know these are very generic as well hourly service one hourly service two a diagnostic on the gut on the guitar you know hours but that's just a precursor to us so we'll we'll get a difference between the entering of a service item versus an inventory item clearly when you're doing service items for like a bookkeeping firm or a law firm or something you'd like to think through it you know the the grouping and that gets away from bookkeeping and more into your strategy in terms of how you're going to be grouping and billing your items do you have to bill on an hourly rate is there some other way that you can bill common billing methods for like a law firm would have a staff and you're going to bill out the staff's time based on possibly hours or possibly the work they're doing but again if you can come up with some other method of billing that would be good later on we'll get into some other service items for like guitar lessons which will kind of mirror which you might see in a job cost system for an accounting firm or a legal firm but this is just to give us an idea of how to set up those service items and help us lead into the inventory items so that when we enter actual service forms and voices sales receipts we could see the difference of the impact on the financial statements balance sheet income statement or profit and loss and related reports for the different kinds of things you know items we enter service versus inventory now there's no impact on I'm going to close that out the financial statements yet for this one but we're leading into then the inventory items that we're going to do next time which will have an income statement impact because we're going to have to add the units and the number of units we have on hand which will then be used by QuickBooks to create this beginning balance in the system and it'll throw the other side over here to the owner's equity the other added burden we'll have to deal with when we enter those items is the information related to inventory the quantity on hand the cost and then the sales price the inventory account and the cost of goods sold so we'll get into that next time