When setting up a new vendor in QuickBooks, which information is essential?

The essential information when setting up a new vendor in QuickBooks includes the vendor name, contact information, and payment terms. The vendor name is critical as it uniquely identifies the vendor within the system, allowing for easy reference and transaction tracking. Contact information is also vital, as it enables communication with the vendor regarding orders, payments, or any issues that may arise. Lastly, specifying payment terms is important for managing cash flow and ensuring timely payments, as they define the expectations for payment deadlines and potential discounts for early payments.

Other options may contain valuable information but do not capture the core requirements for basic vendor setup in QuickBooks. For instance, while company size and tax ID are useful for more detailed record-keeping and compliance, they are not strictly necessary to initiate a vendor profile. Similarly, details concerning the service offered or the business license number can be important for context but are not required for basic vendor transactions. Lastly, knowing the industry type alone does not provide enough foundational information to effectively manage vendor relationships in QuickBooks.