This is the last part of our QuickBooks Online setup. Our example company only sells services. We do not sell any products. Our customers mainly pay us after we issue them an invoice for the services we rendered to them. We can have multiple services listed on an invoice. Each service we provide has an hourly rate. The Type of account for our services will be Income.

The Trial Balance shows the total balance of all of our accounts in our chart of accounts. QuickBooks includes, by default, two service items: Hours and Services. We will not use these, but we will not delete them either.

How do we add services? Suppose we had two services: Video Wedding and Editing Service. Go to the top right and click the Cog Wheel. Go to Lists and go down to Products and Services. If it’s the first time going into this part, click the green button Add a product or service. Because we sell services, click Service. We enter tree pieces of data: the billable item name, the income account it is connected to and the rate that we charge per hour.

Once you have all three types of information, click Save and Close.