Taxomate can create a Cost of Goods Sold account and an Inventory Asset account for you when you run Quick Setup. Here are the steps to create your own accounts instead.
Step 1. Go to the Chart of Accounts in QuickBooks Online
In QuickBooks Online, go to Accounting > Chart of Accounts.
Step 2. Select New on the right side
Step 3. Create the Cost of Goods Sold account
For Account Type, select Cost of Goods Sold. For Detail Type, select Supplies & Materials - COGS. For Name, choose any name you like.
Step 4. Create the Inventory account
For Account Type, select Other Current Assets. For Detail Type, select Inventory. For Name, choose any name you like.
Step 5. Select the new accounts in Taxomate
After you create the accounts in QuickBooks, return to Taxomate and go to Settings > Inventory. In the Accounts card, choose your Asset account (Credit) (the Inventory account) and your Expense account (Debit) (the Cost of Goods Sold account). Each change saves on its own.
