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QuickBooks Tips Blog

QuickBooks Tip: Keeping Track of Inventory

Posted by Joe Mazur on Jun 9, 2011 9:44:00 AM

Sometimes keeping track of inventory can be a pain the butt.  A few initial steps can save a major headache down the road.  Come tax time, accountants will look at the Balance Sheet and use the inventory asset value to calculate your tax returns and having an incorrect inventory can throw off the entire return.   A physical count at year end is always the safest way to go, but why not keep track of it along the way?  Answers usually fall along the lines of 'It's too involving and confusing,' 'I don't have resources necessary,' or even 'I just don't care enough.'  Hopefully with these few easy steps I can help you change your mind.

When purchasing items that will act as inventory, you want to make sure you enter the bill correctly in QuickBooks.  There are 2 tabs within the 'enter bill' screen, one tab is labeled 'expenses' and the other 'items.'  You want to use 'items' to record inventory coming into your business.  Enter the name of the item and QuickBooks will either populate the 'memo' box with the item details or it will ask you to create this item.  When creating the item, make sure to put the proper information in such as; cost, sale price, income category, etc.  Double check to make sure the bill is properly entered and click 'save & close.'  This step will put the items into inventory and all of the details that go along with it.  Once this step is perfected, it all starts to fall into place.

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Topics: Product Information, QuickBooks Tips, Year End Accounting, Year End Bookkeeping, Business Efficiency, Bookkeeping Errors