Today, QuickBooks Online is the most preferred accounting software in the world. You might be wondering why QuickBooks Online has such a big impact on most businesses. This is because it provides advanced features that will empower your business. Recently, QuickBooks introduced tags that will enhance your business effectively. Users use tags as customizable labels to track their transactions for different jobs. Whether you are looking to track your income or expenses, tags in QuickBooks Online will meet all your requirements.
Most of the users don’t know how to use tags and ask how do tags work in QuickBooks Online? We are going to provide a brief guide on this topic and show you how to use tags in QBO.
What do Tags refer to in QuickBooks Online?
Tags play a vital role in managing a business’s accounting tasks. Tags are known as customizable labels that are used to track transactions of specific projects. Tags make it easy to detect the cash flow and help in analyzing future planning. Tags also provide additional information about your transactions, which helps you to create a clear financial report. QuickBooks Online also offers tag groups, which allow you to track different areas of your projects simultaneously.
Tag Groups
Tag groups are used to tag a bulk of transactions together, which provides an efficient result for the business. Tag groups are generally used by large businesses that have a large number of tags. These also benefit businesses when you want to categorize and analyze your financial data.
Learn where you should use the tag groups in your business-
Group Transaction of Different Locations
If a business has several departments from different locations, then you should use tag groups to organize each department.
Make Segments for Projects
If your business covers different projects, then tag groups can help you by categorizing all transactions of each project.
Categorize By Services
If your business offers several services, then tag groups can be used to classify all the transactions related to each project.
Steps to do Tags Work in QuickBooks Online
Tags are important to maintaining an accurate financial report. The first thing you should look into while doing tags in QuickBooks Online is its procedure. So, follow the steps to know how do tags work in QuickBooks Online.
Create a Tag and Assign it to a Transaction
- Sign in to “QuickBooks Online”.
- Go to “Settings”.
- Select the “Tag” option from the lists.
- Now, click on “Create New Tag”.
- Name the “Tag”..
- Open the particular transaction that you want to tag.
- Now, apply the tag to the transaction and save.
Examine your Financial Data With Tags and Tag Groups
- Visit to “Tag”.
- Review all the transactions that you have tagged.
- Now, use “Tag Group” to run a profit and loss report.
- If you want to create more financial reports, then click on “Reports” and assign “Tag Group” to transactions.
Key Benefits of Using Tags in QuickBooks Online
Although Tags in QuickBooks Online are a new feature, it has already become an important tool for every business. With its advanced functions, Tags has earned its place as a must-have feature in every business.
Expense Tracking
Tags revolutionize the way of tracking expenses. Tags can be assigned to particular transactions of business. This helps users track all the expenses accurately and provides meaningful insights into business performance.
Project Tracking
Tags play a vital role for businesses that are managing multiple projects, because tags can track income and expenses of each project. This provides valuable information about each project and delivers better project management.
Categorization
Tags allow you to categorize your transactions. This accurate categorization will improve your operations performance.
Reporting
Tags help you to create customized reports that provide a deeper knowledge of your business position. Tags also allow you to filter transactions according to specific departments and locations.
Conclusion
Here, this is all about the topic of how do tags work in QuickBooks Online. Hope you all understand, and may this guide meet all of your requirements. Always remember one thing while using tags: keep it simple and always review and update your tags. This process will definitely help you to maintain an accurate financial report. Furthermore, you want any help or want to know how to use tags, then feel free to connect to our QuickBooks Online Support Number and QuickBooks ProAdvisor.