00: 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

01: 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.

02: 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.

03: 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

04: 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

05: 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)

06: 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

07: 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

08: 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

09: 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

10: 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)

11: 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.