CANCELLED: QuickBooks Online to Discontinue Tags: What You Need to Know Before May 16, 2025
As of March 8, 2025, QuickBooks Online (QBO) will discontinue support for the 'Tags' feature across all subscription levels. This change aims to streamline data tracking and reporting within the platform. To ensure a smooth transition, it's essential to understand the implications of this update and the steps you can take to adapt.
Understanding the Discontinuation of Tags
'Tags' in QBO have allowed users to categorize transactions for more detailed insights. However, starting March 8, 2025, users will no longer be able to create or manage tags. From March 8 to April 30, 2025, existing tags will be accessible in a read-only format, permitting users to view and generate reports for tagged transactions. After April 30, 2025, all tag-related functionalities will be permanently removed from QBO.
Transitioning to Custom Fields
To compensate for the removal of tags, QBO is enhancing its 'Custom Fields' feature, providing users with a versatile alternative for data categorization. Custom fields enable the capture of specific information tailored to your business needs and can be utilized in both sales and expense forms. The number of available custom fields varies by subscription plan:
Simple Start: 1 custom field
Essentials: 4 custom fields
Plus: 4 custom fields
Advanced: 12 custom fields
This adjustment allows for more personalized data tracking, aligning with the unique requirements of your business.
Recommended Actions for Users
March 17, 2025 - Custom fields expanded functionality launches.
March 17, 2025 - May 15, 2025 - Migrate your tags to custom field(s).
May 16, 2025 - Tags become read-only. You cannot create new tags.
May 16, 2025 - May 15, 2028 - You can view tags and generate reports for historical transactions. After May 15, 2028, the ability to view tags and generate reports will no longer be available. Tags will be removed from QuickBooks Online and they will disappear from historical transactions.
Migrate tags to custom fields
Go to Settings ⛭ and select Tags.
On the tags page, select Migrate tags to custom fields.
Up to 100 tags will be auto-imported and all transaction forms will be pre-selected. Review the selections and make any necessary changes.
For any additional tags, you will need to manually add them to a custom field.
Select Save. Your tags are successfully migrated to custom fields and will be visible on all transaction forms.
Conclusion
The discontinuation of the 'Tags' feature in QuickBooks Online marks a significant shift toward enhanced customization through custom fields. I have always advised my clients to never use tags because of the printing and reporting limitations and instead take advantage of the robust custom fields available in QuickBooks Online Advanced. However, I can understand the basic use (not financially) of tags for tracking certain aspects of a business.
By proactively migrating your tags data to custom fields and familiarizing yourself with the new functionalities, you can maintain efficient and tailored financial tracking within QBO. Embracing these changes will ensure that your business continues to operate smoothly, leveraging the improved tools available for data management and reporting.
Why Hiring a Bookkeeper (Like Me, a ProAdvisor!) is Crucial for Small Businesses
Running a small business is no small feat. Between managing clients, handling operations, and growing your brand, bookkeeping might seem like just another task on your already packed to-do list. Many small business owners attempt to manage their own books, but doing so can lead to costly mistakes, missed tax deductions, and lost time that could be better spent growing the business.
As a QuickBooks ProAdvisor and professional bookkeeper, I understand the complexities of small business finances and am here to help you stay organized, compliant, and stress-free. Here’s why hiring a bookkeeper like me is one of the best investments you can make for your business.
1. Save Time and Focus on Growth
Every hour you spend reconciling accounts or categorizing expenses is an hour you’re not spending on growing your business. Bookkeeping is time-consuming, especially if you're not familiar with best practices and financial software. By hiring a professional, you free yourself to focus on the areas where you excel—whether that's serving clients, marketing your products, or developing new ideas.
2. Reduce Costly Errors
Incorrect data entry, missing transactions, and unbalanced books can lead to financial headaches, penalties, and inaccurate tax filings. A bookkeeper ensures your records are accurate, reducing the risk of costly errors and giving you peace of mind that your finances are in order.
3. Maximize Tax Deductions and Stay Compliant
Tax season can be stressful, but a well-maintained set of books can make all the difference. As a bookkeeper, I keep track of deductible expenses and ensure your records are IRS-compliant. This means you won’t miss valuable deductions or risk penalties due to inaccurate reporting.
4. Gain Financial Insights for Smarter Decision-Making
Understanding your financial position is crucial for making informed business decisions. A bookkeeper provides you with clear financial reports, cash flow analysis, and budgeting assistance, giving you the knowledge you need to scale and manage your business efficiently.
5. Seamless QuickBooks Integration and Optimization
As a QuickBooks ProAdvisor, I not only keep your books organized but also optimize QuickBooks for your specific needs. I can help set up automated workflows, customize reports, and ensure you’re using the software to its full potential—saving you both time and frustration.
6. Avoid the End-of-Year Rush
Scrambling to get your books in order right before tax season is overwhelming. A bookkeeper keeps everything up to date throughout the year, making tax filing smooth and stress-free.
7. It’s More Affordable Than You Think
Many small business owners assume hiring a bookkeeper is a luxury they can’t afford. In reality, the cost of bookkeeping services is often outweighed by the money saved in tax deductions, financial clarity, and time that can be reinvested into the business.
Let’s Get Started!
If you’re ready to take bookkeeping off your plate and gain financial clarity, I’d love to help! As a QuickBooks ProAdvisor, I offer expert bookkeeping services tailored to your business’s unique needs. Contact me today, and let’s work together to keep your business’s finances on track!
Top 10 Things I Miss About QuickBooks Desktop
I can’t think of any.
(updates below) Let me know in the comments below of any that you know.
updates:
I found one (but I don’t use this feature)!:
Unfortunately, QuickBooks Online doesn’t offer the same discount feature/terms as QuickBooks Desktop. The discount must be entered on the bill itself, as there’s no option to apply it when making a payment, unless you create a vendor credit to be applied to the bill when paying.