QuickBooks Online is a popular accounting software used by many businesses, both big and small. One of the features that set QuickBooks Online apart from other accounting software is the ability to create sub-customers. In this article, we will discuss what sub-customers are, how they can be used, and the benefits of using them.
What Are Sub-Customers?
Sub-customers are essentially customers within customers. They are used to track revenue and expenses for a specific group or sub-group of customers. This can be useful for businesses that have multiple locations, divisions, or projects, each with its own revenue and expenses.
Sub-customers can be created under an existing customer in QuickBooks Online. This creates a parent-child relationship between the customer and the sub-customer. The parent customer represents the overall customer, while the sub-customers represent the specific groups or sub-groups of customers.
How to Create Sub-Customers in QuickBooks Online
Creating sub-customers in QuickBooks Online is a simple process. Here are the steps:
- Log in to your QuickBooks Online account and go to the Sales menu.
- Click on the Customers tab.
- Select the customer you want to create a sub-customer for.
- Click on the Edit button for the customer.
- Scroll down to the Sub-customers section and click on the Add Sub-customer button.
- Enter the details for the sub-customer, including the name, email address, and billing information.
- Click on Save.
You can create as many sub-customers as you need for a customer.
Benefits of Using Sub-Customers
Using sub-customers in QuickBooks Online can provide several benefits for businesses. Here are some of the main benefits:
1. Improved Tracking and Reporting
Sub-customers make it easier to track revenue and expenses for specific groups or sub-groups of customers. This allows businesses to see how each group is performing and make better decisions based on that information.
2. Better Organization
Sub-customers help to organize customers into groups, making it easier to manage and keep track of them. This is especially useful for businesses with multiple locations, divisions, or projects.
3. Streamlined Invoicing
Sub-customers make it easier to create and send invoices to specific groups or sub-groups of customers. This can save time and reduce errors in the invoicing process.
Best Practices for Using Sub-Customers
While sub-customers can be a useful tool for businesses, it is important to use them correctly to get the most out of them. Here are some best practices for using sub-customers in QuickBooks Online:
1. Plan Ahead
Before creating sub-customers, it is important to plan out how they will be used. This will help ensure that they are set up correctly and used effectively.
2. Keep It Simple
Try to keep the number of sub-customers to a minimum. Too many sub-customers can make it difficult to manage and track them effectively.
3. Use Descriptive Names
Use descriptive names for sub-customers to make it easier to identify them. This can also help to avoid confusion when creating invoices or running reports.
Sub-customers are a powerful tool in QuickBooks Online that can help businesses to track revenue and expenses for specific groups or sub-groups of customers.