This article explains the importance of adding a vendor name or payee name to every transaction in QBO.
Step-by-Step Guide to Adding a Vendor or Payee for Every Transaction in QuickBooks
Step 1: Access the Bookkeeping Tab
Start by navigating to the bookkeeping tab in QuickBooks. Here, you will be able to view all your downloaded transactions.
🚧For each transaction, it's crucial to enter the vendor or payee's details in the specified field.
Step 2: Select a Vendor
If the vendor already exists in your records, simply select them from the dropdown list.
If the vendor is new to your QuickBooks, such as Etsy in this instance, you'll need to add them to the system. To do this, select "vendor" and input the necessary details.
Step 3: Specify the Transaction Purpose
After saving the vendor's details, specify the purpose of the transaction, for instance, "job supplies."
Recording the vendor for each transaction is important for two key reasons:
- It allows you to track your expenses with each vendor, which is helpful for understanding spending patterns. For instance, you can generate a report to see how much you've spent with Etsy or Google over a year.
- It aids in accurate bookkeeping and reconciliation, as well as making it easier to find specific transactions. When searching for a transaction, the vendor's name is often the quickest search criterion.
By following these steps, you can maintain an organized record and gain valuable insights into your spending patterns with different vendors. Feel free to reach out if you have any questions or require further assistance.