If you want to track a particular account or transaction type, then you have the option to set up class tracking in QuickBooks. This feature provides better tracking than the basic account tracking. Also, if a particular expense type isn’t associated with any particular account, then too you can track it via class tracking.
Why is Class Tracking an Important Feature?
This feature is highly acclaimed as it enables users to simply categorize your expenses into different classes instead of accounts. Managing and reconciling accounts can be difficult for average users of this accounting software. Hence, class tracking is a better and more efficient way to easily manage expenses.
In particular, organizations also have the option to keep track of department expenses. If you have separate properties and many different office locations, then you should consider setting up class tracking in QuickBooks.
What are Classes?
Classes are very specific expense units that users can keep track of. For instance, as a restaurant chain owner, you would want to create a class for each outlet. The expenses can be separately classified and organized. This will also help you in creating more detailed and specific reports.
To create classes in QuickBooks, follow the steps provided below:
- Open QuickBooks.
- From the Edit Menu, select Preferences.
- Click on the Accounting Tab.
- Now, select Company Preference Tab.
- Once you have done this, click on Use Class Tracking.
- Click on OK.
Classes have now been enabled in QuickBooks and can be used for tracking various subcategories of expenses. Next, follow the steps provided below to set up particular categories for tracking:
- From the top menu, click on Lists.
- Select Class List.
- Select New.
- Enter a name for the class and select the type of transactions you want to track through it.
- Enter any subclasses if you’d like to.
- Fill in all the necessary fields.
We recommend that you only use classes for tracking expenses and bills. Any cost related to your enterprise can be tracked easily via classes. You also have the option to create sub-classes for getting more specific about the categories.
QuickBooks Accounting Software
Apart from expenses, QuickBooks also enables users to manage revenue and profits. There are various features available for managing revenue, some of which have been mentioned below:
Invoices can be created for each purchase and stored in QuickBooks. An invoice is a customizable form that contains all the necessary details related to a particular transaction. The amount of transaction is automatically noted in the Journal.
Through reporting, you can identify all the unnecessary expenses that are eating away into your profits. This will help you in maximizing your profits. Further, the data will provide necessary insights.
RepairContact QuickBooks Tech Support Team
Our QuickBooks technical assistance team can help you in easily setting up classes. Everything will be configured properly along with classes and sub-classes. Further, if you have problems following the instructions, then we also provide QuickBooks remote support.