---
title: "How do I create a Cost of Goods Sold account and an Inventory Asset account in QuickBooks?"
description: "How to create a Cost of Goods Sold account and an Inventory Asset account in QuickBooks for Taxomate."
url: https://docs.taxomate.com/en/articles/6181275-how-do-i-create-a-cost-of-goods-sold-account-and-an-inventory-asset-account-in-quickbooks
collection: "General"
updated: 2026-10-22
language: en
---

# How do I create a Cost of Goods Sold account and an Inventory Asset account in QuickBooks?

How to create a Cost of Goods Sold account and an Inventory Asset account in QuickBooks for Taxomate.

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**.

![QuickBooks menu with Chart of Accounts highlighted](https://staticfiles.gleap.io/helpcenter/68a7b1342e2424396e93973d/20250822192055_3885.png)

## Step 2. Select New on the right side

![QuickBooks Chart of Accounts with the New button highlighted](https://staticfiles.gleap.io/helpcenter/68a7b1342e2424396e93973d/20250822192055_8300.png)

## 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.

![QuickBooks new Cost of Goods Sold account form](https://staticfiles.gleap.io/helpcenter/68a7b1342e2424396e93973d/20250822192055_7789.png)

## 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.

![QuickBooks new Inventory account form](https://staticfiles.gleap.io/helpcenter/68a7b1342e2424396e93973d/20250822192055_9868.png)

## 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.

![Inventory settings page with the Accounts card](https://staticfiles.gleap.io/ghelparticle/hS9VehkkEtXBXsU6XvKZruRB293QwzfjF2dCISRMXodviIvYPj4YZv3huBaiATgJi2y8HuBexLS.png)