Sunday, November 18, 2007

Items in QuickBooks

Sometimes I just have to take a step back and realize how many companies are using QuickBooks and don't realize how to use Items. Recently I was browsing a contractor blog that I visit occasionally to read postings and comments. Of all companies, contractors benefit the most from using Items. Click the check box when creating an item that says if you are a contractor click here. When you do, another area of the item opens up so you can indicate your cost of goods sold general ledger account to post to if you purchase items for a job, or your income account to post to when you bill for a job. If you use the "items" tab in the "vendor bill" you can post your costs to the items. When you do your invoicing, of course you have to use an item to bill to. When you do both, you can see profitability of item reports.

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