How to add customers and vendors on QuickBooks

beginner 8 min read Updated 2026-03-18

Quick Answer

Adding customers and vendors in QuickBooks involves accessing the Sales or Expenses menu and clicking the New Customer or New Vendor button. Fill out the required contact information, payment terms, and tax settings to complete the setup.

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Prerequisites

Active QuickBooks subscription
Administrator or user access to QuickBooks
Customer and vendor contact information

Step-by-Step Instructions

Access the Customer Management Section

Log into your QuickBooks account and navigate to the Sales menu in the left sidebar. Click on Customers to view your customer list. To add a new customer, click the New Customer button in the upper right corner of the screen.

You can also use the keyboard shortcut Ctrl+Alt+C to quickly add a new customer.

Enter Customer Information

Fill out the customer details form with the following information:

Company Name or individual name
Contact Information including email and phone
Billing Address and shipping address if different
Payment Terms from the dropdown menu
Tax Information including tax ID if applicable

Click Save when complete.

Enable the 'Is sub-customer' option if this customer is a division of another existing customer.

Configure Customer Payment and Tax Settings

In the Payment and billing tab, set up:

Preferred payment method
Terms (Net 15, Net 30, etc.)
Opening balance if the customer has an existing balance

In the Tax info section, select whether the customer is taxable or tax-exempt and assign the appropriate tax rate.

Access the Vendor Management Section

Navigate to the Expenses menu in the left sidebar and click on Vendors. This will display your current vendor list. Click the New Vendor button in the upper right corner to begin adding a vendor.

Use Ctrl+Alt+V as a keyboard shortcut to quickly add a new vendor.

Enter Vendor Contact Details

Complete the vendor information form:

Company Name
Contact person name and title
Email address and phone number
Mailing address
Website (optional)

Ensure all required fields marked with an asterisk (*) are completed before proceeding.

Adding the vendor's website helps you quickly access their online portal for orders and payments.

Set Up Vendor Payment Terms and Tax ID

Configure the vendor's business details:

Select Payment terms that match your agreement
Enter the vendor's Tax ID or Social Security Number
Set an Opening balance if you owe money to this vendor
Choose the appropriate 1099 category if applicable for tax reporting

Click Save to create the vendor record.

Enable 'Track payments for 1099' if you'll pay this vendor $600 or more annually for services.

Verify and Test the New Records

Return to your Customer and Vendor lists to confirm the new entries appear correctly. Test the setup by creating a sample invoice for the new customer or entering a test bill for the new vendor. Check that all information displays properly and make any necessary corrections by clicking Edit next to the customer or vendor name.

Use the search function in the customer/vendor lists to quickly locate newly added contacts.

Common Issues & Troubleshooting

Cannot save customer or vendor due to duplicate name error

QuickBooks doesn't allow duplicate names. Add a distinguishing element like a location or department, such as ABC Company - Denver or ABC Company - Accounting Dept.

Tax rates are not showing up correctly for customers

Go to Taxes > Sales Tax and verify your tax rates are set up correctly. Ensure the customer's address matches a location where you have sales tax configured.

1099 tracking option is grayed out for vendors

Enable 1099 tracking by going to Settings > Account and Settings > Advanced and turning on the Track payments for 1099 option under the Bills and expenses section.

Customer or vendor information is not syncing across devices

Ensure you have a stable internet connection and try refreshing your browser or logging out and back in. If using QuickBooks Desktop, perform a File > Update to sync changes.

Prices mentioned in this guide are pulled from current plan data and may change. Always verify on the official QuickBooks website before purchasing.

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