Why Clean Up These Lists?

Over time, QBO company files accumulate unnecessary or incorrect entries:

• Duplicate vendors and customers
• Old, inactive items or accounts
• Misspelled names or inconsistent naming formats
• Unused service or product codes
• Cleaning these up helps with:
• Faster data entry (fewer dropdown clutter)
• Accurate reports and 1099s
• Easier reconciliation and transaction tracking
• Smoother integration with apps like Dext, Gusto, or HubSpot

Step 1: Review Current Lists

Before cleaning, assess what’s currently in your QBO:

For Vendors:

Go to Expenses > Vendors

Click on Settings (the gear icon) > Export to Excel to review offline

Filter by vendors with no recent transactions

For Customers:

Go to Sales > Customers

Export the list

Filter by “last activity” to identify inactive or one-time customers

For Product/Service Items:

Go to Settings > Products and Services

Filter by Inactive or Zero Usage

Export for bulk review

Create a tab in your spreadsheet for each list and flag potential cleanup candidates.

Step 2: Identify Duplicates and Inactive Entries

Duplicates and unused records are the main targets for cleanup:

Common Issues:

“Acme Construction LLC” and “Acme Const.” as two vendor records

“John Smith” vs. “Smith, John” as duplicate customers

“Consulting Services” and “Consulting Svc” as separate service items

Best Practices:

Consolidate transactions into a single version

Use consistent naming conventions (e.g., Last, First for customers)

Inactivate unused or one-time vendors/items

Use conditional formatting in Excel to highlight near-matches by name.

Step 3: Merge Duplicate Vendors or Customers

If duplicate records have transactions, QBO allows you to merge them.

How to Merge:

Choose which record you want to keep (usually the one with the correct name)

Rename the duplicate record to match the desired name exactly

QBO will prompt you to confirm merging

Important: Merging is irreversible. Always back up your QBO file or export your lists before merging.

When Not to Merge:

If vendors/customers have significantly different histories and should be kept separate for compliance

If you use location-based tracking where each record serves a different purpose

Step 4: Make Vendors, Customers, or Items Inactive

Sometimes, it’s safer to make a record inactive than to delete or merge it.

How to Inactivate:

Navigate to the list (Vendors, Customers, or Products & Services)

Click the dropdown next to the record

Select Make Inactive

QBO will retain historical transactions, but the entry will no longer show up in selection lists.

When to Use:

One-time vendors or customers

Old inventory items no longer sold

Archived programs or projects for nonprofits

Step 5: Standardize Naming Conventions

A consistent naming structure improves list readability and reduces duplicates in the future.

Suggested Formats:

Vendors: Company Name or Last, First

Customers: Business Name or Last, First

Service Items: Category – Service (e.g., “Marketing – Website Design”)

Products: SKU or Product Name

Apply via Bulk Edit:

Export your list

Edit naming structure in Excel

Re-import to apply changes (only available in QBO Advanced or with third-party tools like SaasAnt)

Step 6: Review Mapping to Accounts and Classes

While cleaning up lists, ensure that items and vendors are properly mapped to correct accounts and classes:

Check:

Is each service item pointing to the correct income/expense account?

Are vendors or customers linked to the appropriate class (e.g., project, location)?

Are items taxable or non-taxable where appropriate?

Fix:

Edit each record and adjust the chart of accounts mapping

Use batch edit tools or apps for large-scale updates

Step 7: Archive, Backup, and Track Changes

Before making bulk changes:

Export lists to Excel as backups

Note date of cleanup in your internal records or SOPs

After cleanup:

Run a report showing list totals before and after

Document which records were merged, deleted, or renamed for audit trail

Step 8: Ongoing Maintenance Plan

Cleaning up once is great—but keeping it clean is even better.

Suggested Schedule:

Monthly: Flag duplicates or odd entries

Quarterly: Review new entries for naming consistency

Annually: Inactivate vendors/customers/items not used in 12 months

Set Rules:

Only specific team members can add new records

Use naming templates

Train team on merge/inactive protocols

Tips for Nonprofits

If you’re using QBO for a nonprofit, you may have:

Donors and grantees mixed in your Customer list

Old programs or events as Product/Service items

Organize lists by:

Tagging donors vs. sponsors

Using custom fields for grant identifiers

Creating separate items for restricted vs unrestricted income

Tips for Construction or Trade Businesses

Common issues include:

Multiple vendor accounts for the same supplier (e.g., “ABC Lumber Miami” and “ABC Lumber – Warehouse”)

Customers split by job site or contract

Service items not mapped correctly for job costing

Recommendations:

Use Project names for job tracking, not customer splits

Map items to job cost accounts and review chart of accounts

Tag vendors by trade (e.g., electrical, plumbing)

Tools to Speed Up the Process

While QBO’s native tools work, consider using apps for bulk edits and cleanups:

SaasAnt Transactions: For batch imports and edits

Transaction Pro Importer: For more complex mapping

Dext: Ensures vendor names match documents

Hubdoc: Links customer names to receipts/invoices

Final Thoughts

Cleaning up your Vendors, Customers, and Product/Service Items in QuickBooks Online pays dividends in speed, clarity, and accuracy. By investing a few hours upfront, you’ll streamline bookkeeping, avoid errors, and gain confidence in your reporting.

Done right, this cleanup process sets the stage for better automation, easier reconciliation, and a more scalable QBO setup.