Tagging is one of QuickBooks Online’s newest features. You’ve likely found it by now! Let’s look at some of the best practices in developing an intelligent tagging system to offer you and your clients market insights that matter if you haven’t started using it yet or need some guidance.
Tags are reusable labels that allow you to keep track of your money in any way you want. When you group marks,
you will get a better picture of how your company is doing. To get reports for your tags, you’ll need groups. Transactions such as invoices, expenditures, and bills may be tagged. You can’t tag general journal entries or transfers right now. Customers and objects, for example, cannot be tagged. A transaction can have as many tags as you want. However, each category can only have one tag. Tags allow for more flexibility. You can keep track of items however you like, and it will not affect your books. Accountants and table of accounts users use categories for tax purposes.
If you need to group income and expenditures for work costing, budgeting, or fund accounting, use classes. Groups may also be used to keep track of individual line objects. Tags are used to keep track of transactions. Tags are an easy way to track the information you care about: monitor revenue, expenditures, and assets for various sites or areas using locations. When you need to charge sales tax based on an address, places are ideal.
Tags are reusable labels that allow you to keep track of transactions however you like. Invoices, costs, and bills can all be tagged. To see how particular areas of your business are doing, group tags together and run reports. They have no bearing on your books. Instead, they’re a way for your team to keep track of the information that’s most important to you.
Step 1: Create tag groups: Begin by organising your tags into groups:
- Pick Tags from the Settings menu.
- Choose New from the dropdown menu, then Tag party.
- Assign a name to the community.
- Choose a colour from the dropdown menu.
- Click Save when you’re done.
Let’s pretend you’re the owner of an event planning firm. You would want to look at how much money you made and how much money you spent on events this year.
Step 2: Add new tags and transactions to the system: When working on a form, such as an invoice or expense, you can add tags:
- Enter the name of the tag you want to build in the Tags area. Then choose + Add.
- To apply the tag to one of your classes, choose it.
- The tag is created, and the form is tagged. Simply enter the name of a current tag in the Tag field and pick it.
Please note that you can add as many tags as you want, but each tag category can only have one tag.
Step 3: Use tags to gain insight: To see how tagged transactions are doing, run reports for tag groups:
- Pick Tags from the Banking menu or the Transactions menu.
- Choose a party from the list.
- Pick Run report from the Action column.
- You’ll see how something in the community impacts the bottom line because groups have both money in and money out transactions.
Steps 4: Tags and tag groups can be edited:
- Pick Tags from the Settings menu.
- Locate the tag or tag category that you want to change.
- Pick the Run report dropdown from the Action column. Then choose Edit tag or Edit community from the drop-down menu.
- Choose Settings.
- Account and Settings should be selected.
- The Sales tab should be selected.
- Turn off Tags in the Sales form content section. Then choose Save.
- Select the Expenses tab from the drop-down menu.
- Switch off the Show Tags area on cost and purchase forms in the Bills and Expenses section. Then choose Save.
- Choose Done.
In some instances, tags can be divided into groups. You may add one tag from each party to each transaction. You can tag any transaction with one employee name, a vehicle, or both if you create a group called Employees and add all of your employees to it.
In QuickBooks Online Simple Start via Plus, you can build up to 40 tag groups, and in QBO Advanced, you can create an infinite number of groups. These tags will amount to up to 300 in total in these categories. You may have an endless number of ungrouped tags (also known as “flat” tags) as a solution to the 300-tag maximum.
In conclusion, QuickBooks Desktop software is accounting software that has always been a leading software in U.S U.K. and Canada. The reason behind this software being so successful and loved is the kind of features that the software provides and tagging the transactions is one of them. I hope that this blog helped you and was worth your time.