I am not a seasoned bookkeeper. I have been using Quickbooks desktop for 2 years just as it came. The business I work for has 5 different departments. I would like to add these into my chart of accounts and then have subcategories for the expenses each dept. incurs. We want to start tracking what is being spent by department rather than just the usual accounts as they are set up in Quickbooks. Is this the right place to do this?
My thinking is that when I make payments and I assign the account it goes under I will be able to right from the start assign that expense to the correct dept. and not have to redo my budget paperwork at the end of the year for the next years projections. Any advice is welcome. Thank you.
Instead of creating accounts for each department, you might want to consider using the Class tracking feature instead. You will create a class for each department, and assign to them to the expense transactions.
To enable the Class tracking feature:
To add a class:
After setting up the classes, you will see a CLASS field on the expense transactions. Just select the class (department name) that you want to assign on a transaction as shown in the screenshot.
When you need a report of the total expenses for each department, you can customize the Transaction Detail report. Here's how:
On the other hand, we have in-product articles about class tracking that you might be interested with. You can check it by pressing F1 to launch the Help window and searching for something like class tracking.
Feel free to reach out again if you have other questions.