How to use QuickBooks Class Tracking?

How to use QuickBooks Class Tracking?

QuickBooks plays a very ancillary role when it comes to tracking your income and expenses. However, there are times when you might need to go beyond the standard account-based tracking performance. This is where QuickBooks class tracking in comes into play. QuickBooks online class tracking is a user-friendly method for setting up class tracking which enables you to attain greater control over expense categorization in a very time-effective manner.

What is QuickBooks Class tracking?

The feature of class tracking in QuickBooks Online provides you with a customizable way to track specific expenses, handle the accounting for one-off scenarios, manage occasional expenses and categorize shared expenses across multiple accounts and that isn’t necessarily associated with a particular account type. You can create classes for certain transactions that you feel the need to group exclusively. Doing so enables you to track account balances by the business office, location, department, separate properties you own or any other meaningful breakdown of your business. It assists you in managing your business in the most efficient manner.

How do I Turn on Class Tracking in QuickBooks?

  1. To begin with, you will need to navigate to the ‘Preferences’ section which is located in the ‘Edit’ menu.
  2. Then, you will have to click on the Accounting icon.
  3. Next, navigate to the Company Preferences.
  4. After the previous step, click to check the Use Class Tracking box.
  5. Now, click on the ‘OK’ option.
  6. For the next step, you must navigate to the Menu section.
  7. After that, select the lists that are of interest to you.
  8. Click on the ‘Class List’ option in order to set up categories for your expenses.
  9. Click on the ‘New’ option to create a new class.
  10. Create a class for your desired expenses
  11. Finally, you will need to fill in the name related to the class to complete the procedure.

Putting Classes to Work

Now, you can fully utilize the classes when it comes to your transactions.

  1. First, you will need to open up a blank invoice and then choose a customer.
  2. The class field will be placed right next to the name of the customer.
  3. If the entire invoice is assigned to the same class, then you will have to click the drop-down list and then select whatever invoice is of interest to you.
  4. Also, you can allocate separate classes to each of the line items individually.

Also Read: Methods to Resolve QuickBooks Sync Manager Error   [xyz-ihs snippet=”consult-button”]

Make a note of the fact that not all invoice templates include a column for classes.

  1. However, you can add the templates by selecting the invoice form that you would like to change and then click on the ‘Customize’ option located in the toolbar.
  2. After you have performed the previous step, you can add classes under the columns section once the window for customization data layout opens up.

QuickBooks provides its users with two reports that are specifically designed for tracking class-based transactions. These two reports are the Balance Sheet by Class and the Profit & Loss by Class.

  1. Both of the reports can be found in the Reports menu located under the ‘Company & Financial’ section.
  2. Furthermore, you can filter other reports in order to incorporate a class column.
  3. You can also create a QuickReport for individual classes.
  4. In order to do so, you must navigate to the ‘Lists’ sections, then the ‘Class List’ section and then select a graph or report.

Creating types

The process of creating types is almost identical to creating classes. The steps to creating types are as follows:

  1. Navigate to the Lists section and then the Customer & Vendor Profile Lists, and select the ‘type’ that you want.
  2. You will have to follow the same instructions here as you did when you created classes.
  3. Moreover, ‘types’ do not appear on any of the transactions. They have been exclusively created for your own personal usage and they are saved in your documents.

Doing so will make your class tracking procedure much more streamlined!

Conclusion

Class tracking in QuickBooks helps you group your transactions in a smart manner and according to the departments in which the transactions belong.

We hope that this article provided you with the information that you were looking for regarding QuickBooks class tracking. If you have any further queries regarding the blog, feel free to contact our ProAdvisors at QuickBooks Online Support Number for instant resolution.

FAQs

Q1: How to enable the class tracking feature in QuickBooks Desktop?

A: You can look through the following steps to turn on class tracking.

  • Firstly, open the company file.
  • Select the Edit menu and choose Preferences.
  • Now, click on Accounting and then select the Company Preferences tab.
  • After that, use class tracking for the transactions checkbox.
  • Choose ‘Assign classes’ if you want to set a reminder of assigning classes in QuickBooks.
  • Lastly, click on OK.

Q2: What are the steps to turn off class tracking in QuickBooks Desktop?

A: Here’s how to disable class tracking in QuickBooks Desktop.

  • Firstly, choose the Edit tab and go to the Preferences tab.
  • After that, select the first option when a screen pops up.
  • Now, click on Company Preferences next to My Preference.
  • Finally, you have to unmark the box to use class tracking for transactions.

Q3: How can you set up classes in QBO?

A: You can follow the steps written below to turn on classes in QuickBooks Online.

  • The first thing is to choose the Settings option and then choose Account and settings.
  • Now, select the Advanced option, then select the Categories section to edit it.
  • You are required to enable “Track classes”
  • Now, you have to select each row in a transaction under “Assign classes”.
  • At last, tap on Save.

Q4: How do I change expense categories in QuickBooks Desktop?

A: The following steps may help you in changing expense categories.

  • First of all, choose the Sales menu and go to Products and Services.
  • Choose the More option and then click on Manage Categories. ‘
  • Now, choose Edit from the Action column.
  • Finally, you can make the changes and choose Save.

Q5: How to change the class name in QuickBooks Desktop?

A: Undergo the following steps to make changes to the name of the class in QuickBooks Desktop.

  • Initially, choose a class in the “Class List” window to edit the name.
  • After that, select the “Class” option, then click on “Edit Class”.
  • Finally, enter a new description in the “Edit Class”.

Q6: How to turn on location tracking on QuickBooks Desktop?

A: Here are the steps to enable location tracking in QuickBooks Desktop.

  • First of all, click on Settings, then tap on Account and Settings.
  • Now, go to the Advanced option.
  • Choose the Edit icon under the Categories section.
  • For tracking locations, mark the checkbox.
  • Finally, click on Save & choose Done.

Q7: Can you assign multiple classes to a transaction in QuickBooks Online?

A: Yes, you can attribute one transaction to your 2 classes without duplicating the operation. You should keep in mind that you can go with this option if the classes are not related to each other. To perform it, you have to choose each row in a transaction under the Assign classes option.

Q8: How to Reclassify transactions in QuickBooks Online?

A: Here are the steps to reclassify transactions in QBO.

  • First of all, launch the client’s QuickBooks Online Company.
  • Choose the Accountant Tools option, then click on Reclassify Transactions.
  • At last, click on Profit and Loss to check the income and expense accounts.

Q9: How to disable class tracking in QuickBooks Online?

A: The steps to turn off class tracking in QuickBooks Online have been mentioned below.

  • Initially, go to the Account and Settings option.
  • Now, select the Advanced tab.
  • Click on the pencil option under the Categories section.
  • At last, unmark the Warn me option (under the Track classes checkbox) when a transaction has not been assigned a class.

Q10: How many locations do QuickBooks Online have?

A: You are allowed to create locations and classes in the Advanced and Plus subscriptions. The Plus subscription is limited to 40 classes and locations combined. And, with the Advanced subscription, you can have an unlimited number of classes and locations.

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How to use QuickBooks Class Tracking? - QASolved
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How to use QuickBooks Class Tracking? - QASolved
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QuickBooks class tracking is a user-friendly feature that enables you to attain greater control over the expense categorization in an efficient manner.
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