For which type of company should a non-zero initial quantity on hand for inventory items be entered manually during setup?

The correct response relates to a company that is already in business and using inventory. In this scenario, the manual entry of a non-zero initial quantity on hand during setup is crucial because the business has an existing inventory that must be accurately reflected in the new system. This ensures that stock levels and financial records are correct from day one, providing a clear picture of the company’s assets and enabling effective inventory management.

Setting up inventory in such a situation requires careful consideration of the current stock levels. Since this company already operates with inventory, using the system to provide a realistic depiction of their assets is necessary for maintaining accurate accounting records, managing stock effectively, and fulfilling customer orders without issues.

In contrast, a new business that is new to QuickBooks Online would typically not have existing inventory quantities to enter, making manual entry unnecessary. Similarly, a company transitioning from QuickBooks Desktop or one setting up inventory items through QuickBooks Online Accountant might utilize import features or bulk setup processes that streamline these entries, negating the need for manual input of initial quantities on hand.