Tagging coming to QuickBooks Online

Introduction to Tagging (by Murph)

When it comes to 'tagging' it has been around a lot longer then you think. In fact, it may well have been around since the time of the caveman. OK, some of you are thinking that "Murph has lost his marbles." When we recognize that tagging is simply a form of identification, then many archeologists believe that early cave dwellers tagged each others depictions with their own marks (or tags) to either indicate acceptance or rejection of the depiction. 

Of course some of you may have been confusing my use of the word tagging with the slang version of our modern day graffiti which is another form of expression, and may in fact have similar forms or purposes of identification as that associated with those early cave dwellers.

But the term tagging as it relates to information systems, data and metadata is also similar because it is yet another form of assigning an identification, keyword or term to a piece of information, typically for browsing or searching purposes. But as with the other forms, these tags too are generally chosen informally by the individual or creator of the data and chosen for their reference purposes.

But if you think tagging of data for this type of purpose has been only associated with the computer age, think again. Paper storage in large businesses since the late 19th Century has made use of different forms of tagging (or indexing), among the first such users were the insurance industry, banking and government (of course).

The Dewey Decimal System used in libraries is a form of tagging that combines both a faceted and enumerated classification schema with an identifier for rapid reference that has nothing to do with the common identifies that readers would normally look for such as the book's title or author.

And when it comes to computers the early Unix computers offered a tagging application that built a cross-reference called a tag-table which was a form of what today we would call a word index rather than true metadata associated with <tags>. But most tagging as we know it came about as a feature of Web 2.0 development and it has spread into many other computer applications even when other data elements that are defined or work like tags such as <meta> tags already exist. The reason is simple, people seem to want the ability to call things what they want to call them, and therein lies the potential for problems.

Without a system of control, or some fundamental guidelines on how tags should be used, tags just become so much 'graffiti'.  I once told QuickBooks clients before we had 'drop down custom lists' about a Veterinarian who asked his staff to list each of his clients' pets by type in the free form 'pet type' custom field we set-up on the Customer screen. Just how many different ways do you think there is to spell 'Pomeranian' or 'Pekingese'? It was a big problem before we could standardize names with drop-down lists. But now I can envision that many users will chose to use 'Tags' (even if early they are only available on a transaction basis) for identifications like this resulting in erroneously spelled or mismatched tags being created and ending up being garbage in the database. The old saying "garbage in, garbage out" comes to mind.

So too will be the problem of tag overabundance... in other words, too many tags. There will likely be people who apply so many tags that "they will not be able to see their 'data forest' for their 'tree tags'." Their graffiti will have totally covered over the art that is their actual data.

You as ProAdvisors need to help your QuickBooks Online clients not get carried away by this new found ability to 'tag' or 'paint their data' with the colors of their affections. We are told these new tags are a way the QBO user can track their data in ways that have nothing to do with the accounting, but let's not forget... this is first and foremost 'ACCOUNTING DATA.'

And now, let's see what Liz has to tell you about the new 'tagging feature' in QuickBooks Online.

Transaction Tagging (by Liz Scott)

There is currently a new 'Beta feature' in QuickBooks Online called 'tagging' which is the subject of this feature.

Tags are designed to be a versatile tool for QuickBooks users.

Currently, QuickBooks Online is in Beta with a new user experience named Tagging. Tags are designed to be a more natural way for users to group like data. At this time, QuickBooks Online Tags are only available for Expense and Invoice transaction with capacity expanding overtime to all money-in and money-out transactions. 

By using Tags, groups can be created to track like data. Tags will not replace Chart of Accounts, Classes, Location, or Custom Fields. Instead, tags are an additional way to gather data to create reports. 

QuickBooks Online Tagging Features and Functionality

Based on the current information released by Intuit, it appears Tags will be applied to Profit and Loss Reports. At this time, Tags are tracked in the header of each Expense transaction and Invoice to which they are applied. Eventually, Tags may also be applied to each line item of transactions.

Tags can be color-coded for easy visibility. Soon, Tags will be added to Rules in the Banking Center to ensure Tags are applied to all tracked transactions.

QuickBooks Online Tags API for Connected Apps

QuickBooks Online Apps with Tags are not yet available but, in the works, Tags will be in the API for apps to be able to connect, allowing for bidirectional syncing of data.

Tags were recently explained during the QB Power Hour1. Intuit provided a list of Tagging Frequently Asked Questions as part of that presentation.

If you’d like to provide feedback to Intuit concerning the 'QuickBooks Online Tagging feature/functionality' discussed, please take a moment to share your thoughts here.

1 - The QB Power Hour (qbpowerhour.com) is a production of Long for Success, LLC, the principal of which is Michelle L. Long, CPA, MBA.