How to Organize Vendors in QuickBooks

As a routine measure of quality control and organization, it’s a good idea to periodically organize your vendors in QuickBooks. In QuickBooks, a good report to aid in this process is the “vendor contact list report.” You can export this report to excel and use filters or other commands to manipulate the data to help identify duplicate vendors, vendors lacking addresses or simply unnecessary vendors. When duplicates are found, you can utilize the merge function in QuickBooks to combine both vendors and their respective activity into one vendor profile. Another common way your vendor list can easily grow out of control is when a new vendor is added for routine travel and entertainment purchases made by credit card such as restaurants, gas stations, or parking and airfare. For example, instead of creating a new vendor for every restaurant you visit just create one vendor profile called something like “CC Meals” or “CC Travel”. You can still retain the detail on the vendor the purchase was made from by typing the specific vendor name into the memo field of the credit card transaction. Routine vendor center maintenance will also prove to be invaluable when it comes time to process 1099’s. If you keep a clean vendor list throughout the year, you will have less vendors to sort through and the potential of having incomplete contact information will be reduced. While periodic review is good, the real benefit comes from built in control procedures at transaction level. Some helpful tips include the following: 1.) Only provide the rights to add new vendors to approved employees and 2.) Make it a standard procedure to contact all new vendors requesting a W-9 be completed as soon as you receive the first bill or enter into an agreement.

TGG Accounting helps companies maintain their vendor lists in QuickBooks. Call us today to get started.

Written by:
Andrea Murray
TGG Accounting
 
 
Share:

Sorry, comments are closed for this post.