Class Tracking in QuickBooks Online Explained

Author

Reads 1K

Accountant Counting Money
Credit: pexels.com, Accountant Counting Money

Class tracking in QuickBooks Online is a powerful feature that allows you to categorize and track expenses by class, making it easier to manage your finances.

You can create up to 350 classes in QuickBooks Online, which is useful for businesses with multiple departments or projects.

To track classes, you need to set up a chart of accounts and assign classes to specific accounts.

Each class can be assigned to a specific account, allowing you to track expenses by class and account.

Enabling Class Tracking

To enable class tracking in QuickBooks Online, you need to select "use class tracking" on your QuickBooks profile tab.

The settings for class can be found on your QuickBooks profile tab, where you simply select “use class tracking” to enable this feature.

You'll then choose either “one to entire transaction” or “one to each row in transaction” before saving.

The “one to entire transaction” option will assign a class for an entire invoice rather than listing it for every product on the invoice.

Classes can be applied retroactively to previous transactions if the class is the only thing that has changed.

An additional column will appear in all transactions showing the class assigned to that transaction.

Understanding Class Tracking

Credit: youtube.com, How to use Classes on QuickBooks

Class tracking in QuickBooks Online is a powerful tool that allows you to organize your transactions by class, giving you a more detailed view of your business performance. This extra layer of categorization helps you track the profitability of each product or service line separately.

Classes are freeform lists that are used for maximum flexibility, and you can add them to the entity level or the Sales Item Line level. You can receive extra insights from your financials by using classes.

By using classes, you can track your transactions by class, separate your product or service lines without creating unique QuickBooks Online accounts, and run reports to check sales, expenses, or profitability by business segment. This helps you to get a complete understanding of your business performance.

For another approach, see: Tracking Number Online Check Post Office

What Is It and Why Use It?

Class tracking is an extra layer of categorization in accounting systems like QuickBooks Online.

This layer allows you to group transactions into a wider category, on top of the standard Chart of Accounts. It's especially helpful for businesses with multiple locations.

Credit: youtube.com, How to Use Class Tracking in Quickbooks 2018

With class tracking, you can view your business performance in a more advanced and detailed way, by grouping together transactions from individual locations.

It provides a flexible way to separate product or service lines without creating unique accounts, and you can easily track the profitability of each line.

This makes it easier to analyze your business and make informed decisions, without having to manually manipulate reports.

Track Your Transactions

You can organize your customer and vendor transactions by class after setting them up. This helps you track your transactions more effectively.

To set up classes, you need to run reports to check sales, expenses, or profitability by business segment. This is especially helpful for businesses that have individual locations where they may wish to view their results grouped together for advanced analysis.

Class and location tracking provides a flexible way to separate your product or service lines without the need to create unique QuickBooks Online accounts. This feature lets you track the profitability of each product or service line separately.

Credit: youtube.com, How to Use Class Tracking in QuickBooks Online - My Cloud Bookkeeping

Assigning classes to transactions is a straightforward process. For example, when creating an Expense Transaction, you can choose the right payment account along with the Expense Detail, Payment Method, and Class.

You can also assign classes to a particular Sales Receipt Transaction by choosing account details including class assigning. This extra layer of categorization enables every transaction to be grouped in a wider category.

Setting Up Class Tracking

To set up class tracking in QuickBooks Online, you'll first need to enable it from your dashboard. Click the gear icon, then go to Account and Settings, and navigate to Advanced > Categories. From there, you can track classes and locations, or just one of them.

To turn on class tracking, you can select "use class tracking" on your QuickBooks profile tab, then choose how you want to apply classes to transactions. You can either assign a class to an entire transaction or to each row in the transaction.

Once you've enabled class tracking, you can start organizing your customer and supplier transactions by class. You can run reports to check sales, expenses, or profitability by business segment, giving you valuable insights into your business's performance.

Enabling QuickBooks Online Advanced

Credit: youtube.com, QuickBooks Online How-To: Setting up Class Tracking

To enable QuickBooks Online Advanced, you'll need to access your QuickBooks dashboard and click the gear icon. From there, select Account and Settings.

You'll then navigate to the Advanced tab, where you can choose to track classes and locations, or just one of these features. The GIF provided shows exactly where to find this option.

Clicking on Track classes and Track Locations will allow you to compare the performances of different areas in your business, which is especially useful for business owners with multiple locations.

SOS Inventory is designed to integrate seamlessly with all of QuickBooks' functions, and it offers many features that can enhance your inventory capabilities beyond what QuickBooks provides on its own.

Intriguing read: Online Inventory Tracking

Enabling QuickBooks Online Payroll

To enable QuickBooks Online Payroll, navigate to Settings⚙ and choose Payroll Settings. This is where you'll find the option to turn on class tracking.

You'll need to turn on class tracking in the Payroll Settings. This will allow you to assign classes to your employees.

Credit: youtube.com, QBO Payroll Class Tracking

In the Class Tracking segment, choose Edit and then turn it on. Determine how you want to monitor classes.

If the Class Tracking segment isn't displayed in the Accounting Preferences, make sure class tracking is on. If classes are turned off, turn them on, sign out, and then sign back in to turn them on again.

You can turn on class tracking in QuickBooks Online Payroll to assign classes to your employees. This feature is essential for tracking payroll.

[Adding in QuickBooks]

To add classes in QuickBooks, navigate to the Lists section and press All Lists, then choose Classes. You can name the class and save it.

You can also add classes by going to your QuickBooks profile tab and selecting “use class tracking” to enable the feature. Once selected, you choose either “one to entire transaction” or “one to each row in transaction” before saving.

In the Lists section, press All Lists and choose Classes to add a new class. Name the Class and press Save.

Additional reading: Add a Class in Css

Credit: youtube.com, Quickbooks 2021 Tutorial for Beginners - How to Use Class Tracking in Quickbooks

If you need to add multiple classes, you can do so by repeating the process. You can also use the SOS Inventory software to extend the inventory capabilities of QuickBooks and accommodate more classes.

To add classes, you'll need to go to the Lists section, press All Lists, and choose Classes. From there, you can name the class and save it.

Frequently Asked Questions

What is the difference between classes and tags in QuickBooks Online?

In QuickBooks Online, tags are customizable labels for tracking transactions, while classes represent departments or business segments and help categorize financial data. Understanding the difference between these two features can help you streamline your accounting and make informed business decisions.

How to categorize transactions by class in QuickBooks Online?

To categorize transactions by class in QuickBooks Online, navigate to Settings ⚙ > Account and Settings > Advanced > Categories, then select Track classes and choose how to assign classes to transactions.

Oscar Hettinger

Writer

Oscar Hettinger is a skilled writer with a passion for crafting informative and engaging content. With a keen eye for detail, he has established himself as a go-to expert in the tech industry, covering topics such as cloud storage and productivity tools. His work has been featured in various online publications, where he has shared his insights on Google Drive subtitle management and other related topics.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.