Goodbye Tags, Hello Custom Fields: What QuickBooks Online Users Need to Know About the 2025 Switch

If you're like many small business owners I work with, you've probably grown to love (or at least rely on) QuickBooks Online's Tags feature for tracking expenses, categorizing transactions, and running filtered reports. Well, it's time to prepare for a significant change: starting May 15, 2025, QuickBooks Online is phasing out Tags and replacing them with Custom Fields.

Don't panic! While change can feel disruptive, this transition offers some real advantages once you understand how to navigate it. In this guide, I'll walk you through everything you need to know about this switch, including timelines, migration steps, and tips to make the transition as smooth as possible.

The Timeline: When Is This Happening?

Let's start with the most pressing question: when will this change affect your business? Here's the key timeline you need to mark on your calendar:

• March 17, 2025: Custom Fields become available across all QuickBooks Online subscription levels

• May 15, 2025: Tags become read-only, meaning you can no longer add new tags

• May 16, 2025 – May 14, 2028: Three-year transition period where you can view historical tags and run reports, but cannot add new ones

• May 15, 2028: Complete removal of Tags functionality and all historical tag data

This means you have until mid-May 2025 to prepare for the switch and migrate your existing tags to the new system.

Tags vs. Custom Fields: What's the Difference?

Before diving into the migration process, let's understand what's changing:

Tags: The Current System

Tags have been a popular feature in QuickBooks Online that allow users to:

• Categorize transactions beyond the standard chart of accounts

• Track expenses or income across multiple categories (like projects, locations, or departments)

• Filter reports based on tagged items

• Group related tags together

Custom Fields: The New System

Custom Fields offer similar functionality but with enhanced features:

• More structured data entry

• Ability to create fields for different transaction types

• Option to display on customer-facing forms

• More robust reporting capabilities

• Integration with other QuickBooks features

The good news is that Custom Fields can accomplish everything Tags could—and potentially more—once you learn how to use them effectively.

Why Is QuickBooks Making This Change?

While Intuit hasn't shared all their reasoning, the shift to Custom Fields appears to be part of a larger strategy to:

1. Streamline features across their platform

2. Enhance reporting capabilities with more structured data

3. Improve integration with other Intuit products and third-party apps

4. Standardize tracking methods across all subscription levels

As a QuickBooks trainer, I've found that Custom Fields actually provide more flexibility and functionality than Tags once users become familiar with them.

How to Migrate from Tags to Custom Fields

When you're ready to make the switch (ideally before May 2025), follow these steps:

Step 1: Clean Up Your Current Tags

Before migrating, take time to review your existing tags:

• Remove or consolidate duplicate tags

• Ensure all relevant transactions are properly tagged

• Consider your tagging structure and whether it needs updating

To find untagged transactions that should be tagged:

1. Go to the gear icon

2. Select "Tags"

3. Click "see all untagged transactions"

   
   

Step 2: The Migration Process

QuickBooks will provide a built-in migration tool:

1. Navigate to the Tags section and click "migrate tags to custom fields"

2. Review the tags selected for migration (uncheck any you don't want to bring over)

3. Name your new Custom Field (it defaults to "Tags")

4. Specify that the field applies to transactions (recommended)

5. Select which transaction types should display the field

6. Decide whether the field should print on customer-facing forms

Step 3: Review and Test Your New Custom Fields

After migration:

• Your Tags will convert to a dropdown Custom Field with up to 100 options

• If you had grouped tags, they'll appear as "Group Name: Tag Name" in the dropdown

• Historical transactions will retain their original tags

• New transactions will use the Custom Field system

Take time to run a few test transactions and reports to ensure everything is working as expected.

Custom Fields Availability by Subscription Level

An important consideration is how many Custom Fields you'll have access to based on your QuickBooks Online subscription:

• Simple Start Plan: 1 custom field

• Essentials Plan: 4 custom fields

• Plus Plan: 4 custom fields

• Advanced Plan: 12 custom fields

If you've been using numerous tags or tag groups, you may need to consider if your current subscription provides enough Custom Fields for your needs.

Best Practices for Using Custom Fields Effectively

To make the most of this new feature, consider these strategies:

1. Plan Your Structure

Before creating Custom Fields, map out exactly what information you need to track. Consider:

• What reports do you regularly run?

• What data do you filter by most often?

• Which categories are most important to your business?

2. Be Consistent with Naming

Create a naming convention for your Custom Fields and their values. Consistency will make reporting and filtering much easier.

3. Document Your System

Create a simple reference guide for yourself and your team that explains:

• What each Custom Field is used for

• When and how to use each field

• What each dropdown option means

4. Consider Visibility Needs

One advantage of Custom Fields is that you can choose whether they appear on customer-facing documents. Consider which fields might be helpful for customers to see and which should remain internal.

5. Start Simple, Then Expand

If you're new to Custom Fields, start with just one or two critical tracking needs, then add more as you become comfortable with the system.

Potential Challenges and Solutions

Challenge #1: Limited Number of Custom Fields

Solution: Prioritize your most important tracking needs. Consider if you might benefit from upgrading your subscription for more fields.

Challenge #2: Learning Curve for Team Members

Solution: Schedule a training session with your team before the migration. Create a simple reference guide for new procedures.

Challenge #3: Historical Reporting Changes

Solution: Run and save important tag-based reports before the migration. Remember that historical tag data will still be accessible for three years.

Challenge #4: Workflow Disruption

Solution: Test the new system thoroughly before fully committing. Consider migrating in phases if possible.

Preparing Your Business for the Change

To ensure a smooth transition, I recommend taking these steps now:

1. Audit your current use of Tags Understand exactly how you're using Tags today and what information is most critical for your business operations.

2. Clean up your existing Tags Remove duplicates, standardize naming conventions, and ensure all transactions are properly tagged.

3. Plan your Custom Fields structure Design how you'll organize information in the new system before migration begins.

4. Train your team Ensure everyone who uses QuickBooks understands what's changing and how to use the new system.

5. Test before committing If possible, run a test migration in a sample company file before migrating your production data.

6. Schedule the migration during a slower period Try to avoid making this change during your busiest season or near tax deadlines.

Final Thoughts: Embracing the Change

While change can be challenging, the switch from Tags to Custom Fields offers an opportunity to:

• Reevaluate how you track financial data

• Create more structured reporting

• Clean up historical inconsistencies

• Potentially discover new insights about your business

As with any software change, approach this with patience and a willingness to learn. The new Custom Fields system may take some getting used to, but ultimately provides more powerful tools for understanding your business finances.

If you need personalized guidance on preparing for this transition or optimizing your QuickBooks setup, our QuickBooks Online training services are designed to help small business owners like you navigate these changes with confidence.

Remember: The sooner you prepare, the smoother your transition will be. May 2025 might seem far off, but taking steps now will ensure you're ready when the change happens!

Have questions about how this change might affect your specific business setup? Contact us for personalized guidance on making the most of QuickBooks' new features.