QuickBooks Online Class Tracking

Last Updated on November 3, 2020 by Editor Team

Tracking of income, expenses, and profitability of the business, makes it easy to manage the accounting section perfectly. And all these can be done through the QuickBooks Online class tracking. Today Accountwizy will show you that, how can it be set up, and how QuickBooks Online class tracking will be beneficial for you. So, are you ready for that, if yes then let’s read the blog till the end.

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If you need to get specific insights to plan you ahead. Use classes to track your transactions by departments, product lines, or any other meaningful segment in your business. So when it comes time to run the report, you have a clear picture of the financial health of each section. Then, you can use this information to set a budget goal for each class. Below we will show you how to do this process completely and in a simple way.

If you need to keep track of your income and expenses by department, location, property, project, or event, then using classes in QuickBooks may be for you. You can also track your balance sheet by class, but this can be problematic.

Start With QuickBooks Online Class Tracking

Follow the below procedure to started with the QuickBooks Online class tracking:

Step 1: Choose the Tool that’s Right for you

First, you need to think about what you want to track and what kind of insights you want to see. Always remember one thing is that the class tracking is a flexible organizational tool. However, QuickBooks also has other features that may be more specific to your tracking and reporting needs, and that is given below:

  • In case, if you do business in multiple locations, then that time you can use tracking instead. This is a more specific way to track your sales, purchases, and profits by business location.
  • And also, if you work on projects, then you can use the Projects feature to track your job costs and income. And that time you can manage your work and view your progress from a single dashboard.
  • Sometimes if you need to classify the things that you need to sell, then group them into different categories. This method of grouping gives you a clear picture of your sales.

Step 2: Turn on Class Tracking

If you need to assign classes to your employees, you can also turn on class tracking for online payroll. When you’re ready, then here we have to provide the details of the turn-on class tracking. 

  • First, you need to go to the Settings ⚙ and then click on the Account and Setting option.
  • Choose the Advanced option, then click on the option of the Categories section to edit.
  • After that, you need to Check Track classes.
  • And then, also check to Warn me when a transaction isn’t assigned a class. This is an optional step, but it’s good to turn on so when you look at reports, then you know everything got classified.
  • After that, you need to go under the Assign menu, and then classes, select One to the entire transaction or One to each row in a transaction.
  • And at the last, click on the Save, then Done.

Tip:- Select One to the entire transaction if you don’t need to enter a class for each product you sell to a customer. You can save time and assign one class to the entire invoice or sales receipt instead.

Step 3: Set up your class list

It is best to keep it simple. And also it can take time to work with many classes. And the more direct your classes are, the easier it will be to understand your reports.

Note:- Only admissions to QuickBooks Plus and Advanced can create classes. If you don’t have Plus or Advanced, it’s easy to upgrade your plan once you’re ready to use class tracking.

  • First, you need to go to the Settings List and then click on the option of All Lists.
  • After that, click on the option of classes.
  • Then, you need to select New to Give this class a name.
  • After that, you need to add a subclass, then click a subclass option, and then click on the option of the main class.
  • You can nest up to five squares.
  • And at the last, click on the option of Save.

And when you have completed all the above processes, then you can start tracking your transactions in class.

Step 4: Track your Transactions by Class

When you set up your classes, then you can start to organize your customer and vendor transactions by class. You have the option to assign a class to the entire invoice, receipt, or any other customer transaction. If you do not need to track every product you sell in class, it saves you time. If you want to track your customer’s transactions this way, follow the steps in the “How to change a class in a customer transaction” section. 

  • First, you need to click on the + New option.
  • After that, choose the type of transaction that you want to record.
  • And then, you need to add the details of the transaction.
  • After that, you can assign a class:
    • Click on the option of the class drop-down at the top (if you set One to the entire transaction) to assign one to an entire invoice or receipt.
    • And the second one is to add the class in the Class column (if you set one to each row in the transaction) to assign one to each item (or row).
  • Tip:- if you need a new class, then click on the option of + Add option that is new at the top of the drop-down list to quickly create a new one.
  • And, then click on the option of save your transaction.

Step 5: Run Reports by Class

If you track transactions by category, it is easy to keep a close eye on each segment in your business. You can run reports to see your sales, costs, or profits by segment. Then, you can choose to use this information to plan ahead and set a budget by class.

Run reports to check sales, expenses, or profitability by business segment. Learn how to run reports by class.

To get started, go to Reports, then choose Standard. Once you get there, here’s what you can do

View Sales Performance by Class

If you want to view the sales performance by class then in that case you need to follow these given steps:-

  • First, you need to go to the “Sales and Customers” group of reports.
  • After that, you need to sales in class detail, which provides groups your sales by category and shows more information. Then, run these given reports:-
    • Date
    • Type
    • Product or service
    • Quantity, Rate
    • The Amount, and balance.
  • And then, you need to sales by class summary, which is categorized groups your total sales by category.

Classify Your Business

And when if you want to classify your Business then, you need to follow these given steps:-

  • First, you need to go to the “Expenses and Vendors” group of reports.
  • Then run the Buy by category extension. It groups your purchases by the group.

See the Profitability by Class

Here, below we will show you, the process of when you want to see your profitability by the class:- 

  • Go to the “Business Overview” group of the report,.
  • Then run a profit and loss by class. It groups by your income, expenditure, and net income group.

See Transactions & Balances by Category in Other Reports

Here, we will provide the details that help you that you can also customize some reports (like spending by vendor summary) to group information by class.

And also, if you want to do this, then you need to go to the top of a report. Then choose Display Column by or also Group Display, and then click on Class.

Class tracking in QuickBooks Online will not be necessary for every small business owner. But if you have multiple departments or locations, you can consider using this advanced QuickBooks Online tool. Once class tracking is turned on in QuickBooks Online, it can help you make informed decisions to improve the efficiency and profitability of your business. 

Step 6: Create a Budget for Each Class

Here, in this step, you will see how to create a budget for each class. If you track transactions by class, it is easy to plan for each segment. You can budget by category based on profit and loss from the previous financial year. This helps you set more manageable budget goals for each part of your business. Then, you can run a report to see your progress towards your goal, so that you can stay on track. Here we will provide the details related to this process:-

Note:- You need to check your profitability by class from your last financial year if you have not arrived yet. Make sure the numbers are correct. When you are ready to add a budget, these figures will help you base your goals based on the financial performance of the previous financial year.

  • First, you need to go to the Reports menu and then click on the Standard tab.
  • After that, you can search for and run the report Profit and Loss by Class.
  • Then, go to the top of your report.
  • Choose the Report period ▼ drop-down.
  • Then select Last year if your fiscal year starts in January. If not, select the Last fiscal year.
  • And at the last, click on the option of Run report.

Final Line

We hope, through this article, you found the perfect procedure to started with the QuickBooks Online class tracking. Further, if you are unable to do class tracking in QuickBooks Online then, you can get our expert support for instant help. We are always with you to provide support in any situation.

QuickBooks Online Class Tracking