Differences Between Name Types In QuickBooks

Name types are QuickBooks functions that we use whenever we're in a company file. Differentiating between name types in QuickBooks is something we consider a foundation for good bookkeeping.

When looking at them as a whole for the first time, all of the names and understanding their roles can get confusing.

We'll break each one down and show you how to access these name-type lists, what situations to use them for, how to change them, and even when to forgo using them completely.

Vendors

Vendors are accessed via the Vendor button on the QuickBooks Online Desktop app or by going to Expenses > Vendors in the online version.

Vendors are typically the most commonly used name type in QuickBooks. Any time you pay or receive a refund from a company or person, this is a vendor. Some examples include...

• A company that cleaned your floor
• Purchases of materials from a supplier
• Sub-contracted services that would be considered a 1099

Customers or Clients

Depending on how your QuickBooks is set up, customers or clients can be accessed by clicking the Customer button on the QuickBooks Online Desktop app or going to Sales > Customers (or Clients) in the online version.

Customers are people who pay you or your company for goods or services that you've provided.  

Employees

Employee lists can be accessed by clicking the Employees button on the QuickBooks Online Desktop app or going to Payroll > Employees in the online version.

You use an employee name anytime a payment is issued that will be associated with a payroll tax. This is typically used incorrectly when an owner pays themselves both through payroll and owner draws.

For example, the owner, John Smith, pays himself:

• $417.50 after tax through a payroll check. The check would be entered using the Employee's name, John Smith.
• $1,000 through a bank withdrawal; this is an owner draw. Because QuickBooks will not allow the same name to be used multiple times, we created the Vendor name, John Smith*, with an asterisk after the name to differentiate the two. Differentiating these helps with year-end financial reporting.

When Not to Use the Above

Sometimes, you do not need to associate one of the above name types with a transaction. 

An example is the transfer of funds from one of your accounts to another.