Hi there, ROS RV.
Thank you for visiting the QuickBooks Community. I'll share details on how accounts work in QuickBooks Online. Also, ensure you can choose the best one for organizing your products in QBO.
When you create your company in QBO, default accounts in your chart of accounts will be automatically created for you based on the business entity you choose. Also, the time you create your first inventory item in your Inventory List, QuickBooks adds two accounts to your company file's Chart of Accounts. These are:
- 12100 - Inventory Asset - Other Current Asset
- 50000 - Cost of Goods Sold (COGS) - Cost of Goods Sold
In addition, each inventory item requires an income account. You're not required to utilize either of the automatically set-up accounts because you can create on your own. It's possible that one Inventory account you're referring to was manually created in QuickBooks. In this situation, you may use it to track your product sales or services.
On the other hand, I also recommend consulting an accountant. They can advise you on which inventory account to use for your goods and services to record the transactions correctly. Since you haven't found an accountant, you can find one by visiting our ProAdvisor website. There are thousands of trained ProAdvisors and CPAs available to assist you from there.
Lastly, I'm adding this article if you need help in managing your items in QuickBooks: Add product and service items to QuickBooks Online.
Feel free to post again if you have more questions about Inventory accounts in QBO. I'll be happy to lend a hand, ROS RV. Take care and have a good one!
