Uses and limitations of tags in QuickBooks Online

Tags In QuickBooks Online.

Tags and tag groups in QuickBooks Online enable users to monitor and oversee particular transactions effectively. Users have the capability to allocate tags to a wide range of transaction categories, consolidate tags into groups, and generate comprehensive reports to evaluate the operational efficiency of specific business segments.

Given a profound understanding, users can leverage tags for sophisticated purposes including the classification of transactions and the generation of insightful reports.

 

How to Compare Tags and Other Categorization Options

Tags are labels that are able to be customized by clients and subsequently assigned to various transactions, including but not limited to invoices, expenses, and bills. Clients have the capability to establish tag groups, thereby enabling them to generate reports that provide insights into the performance of distinct business sectors. The fundamental aspects of tags are discussed in the lesson entitled Setting up and using tags.

Why We Uses Tags instead of Classes in Quickbooks Online?

While Class tracking is solely accessible in QuickBooks Online Plus and Advanced, tags can be utilized across all subscription levels in QuickBooks Online. This implies that clients have the opportunity to economize by utilizing tags if they do not require any features beyond classes or locations.

Other benefits of tags include:

  • They can be used to track activity across multiple classes, giving your clients an additional angle on their data
  • Clients can’t run budgets by tag, while they can by class
  • You can create up to 300 tags

 

Both classes and tags offer clients the ability to view income and expenses related to various business revenue streams, making them equally effective for generating a Profit and Loss report with comparative columns.

What are the disadvantages of implementing Class tracking?

Upon initiating the use of classes, it is imperative to assign one to each transaction for the generation of precise reports, even in cases of overhead expenses. Failure to do so will result in the appearance of a "Not specified" column on reports. Additionally, classes are designed for more enduring categories and may not be suitable for temporary categories like events.

Why We Uses Tags instead of Location in Quickbooks Online ?

Similar to Class tracking, Location tracking is restricted to QuickBooks Online Plus and Advanced, with a limitation of 40 classes and locations in QuickBooks Online Plus.

Locations are particularly beneficial for showcasing specific business segments that impact both Profit and Loss and Balance Sheet reports. While tags can span across locations, they solely influence Profit and Loss reports.

What are the drawbacks of utilizing Location tracking?

Each transaction is limited to a single location, and some transaction types do not involve a location at all, which might not suffice if there are income or expenses associated with multiple places. Moreover, transactions lacking a location automatically introduce a "Not Specified" column in reports.

 

What are Custom Fields in Quickbooks Online?

To some extent, custom fields resemble tags as they are useful for monitoring distinct information pertaining to each transaction, such as a purchase order number on an invoice. Nevertheless, QuickBooks Online Essentials and Plus only permit three custom fields on sales form transactions and purchase orders.

For advanced customization of fields in transactions, customers, and vendors, opting for a QuickBooks Online Advanced subscription would be optimal since tags are only applicable to transactions.

QuickBooks Online Advanced enables the assignment of numerous custom fields to transactions and list names, inclusive of dropdown lists that function akin to tags. Conversely, tags can be affixed to most transactions but not to lists.

 

When Is the Best Time to Use Tags in QuickBooks Online?

Tags have several benefits over classes, locations, and custom fields:

  • You only use tags when needed, instead of on every transaction
  • You can use tags to group transactions together for reports
  • You can assign multiple tags to transactions 
  • By creating several tag groups, you can analyze transactions against different criteria
  • All versions of QuickBooks Online include up to 300 grouped tags and unlimited ungrouped tags
  • You can create up to 40 tag groups in QuickBooks Online Simple Start through Plus, and unlimited groups in QuickBooks Online Advanced
  • You can use only one tag per tag group in any transaction, but you can use tags from multiple tag groups, and unlimited ungrouped tags
  • You can search for tags in the Transactions by tag screen
  • You can filter Tag reports by other fields—such as Class, Location, or Customer—to get more specifically tailored information


Finally, remember that you can still apply tags even if you already use classes, locations, and custom fields.

 

Exploring the Limitations of Tagging  in QuickBooks Online

Tags and printing:


Tags don’t print—they’re for internal use only. 

Tags and Payroll:


Tags don’t appear in QuickBooks Online Payroll.

 

Tags and target lines:


Like locations, tags can’t be added to the target lines.

If a delayed charge has one or more tags, those tags populate the invoice that brings in the delayed charge. However, when two or more delayed charges have different tags, the last delayed charge’s tags will overwrite the tags from the earlier delayed charge on the invoice, even if they’re added simultaneously by clicking Add All.

 

Tags and billable expenses:


Billable expenses don’t bring tags over to an invoice. The billable expense charge that QuickBooks Online generates when you mark an expense as billable doesn’t have a field for tags.

 

 

 

 

 

 

 

 

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