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Intuit

Set up and use class tracking in QuickBooks Desktop

Find out how to track account balances using different classes in QuickBooks Desktop.

Class tracking lets you track account balances by department, business office or location, separate properties, or any other meaningful breakdown of your business. This lets you track segments you want to keep a close eye on.

For example, if your restaurant has 3 locations, you can create Uptown, Midtown, and Downtown class to track account balances by location. If you're a farmer, you can create a class for each enterprise: corn, hogs, and soybeans. At the end of an accounting period, you can create separate reports for the restaurant and the farm per location and enterprise, respectively.

Step 1: Turn on class tracking

  • You only need to set up the withholding tax account and item once. Next time you have to charge off withholding tax, just use your existing withholding tax item.
  • Set up classes based on the type of reporting you want to do and consider how you want to see your business segments on reports.
  • Set up an “other” class to classify transactions that don't fit any class you defined.

Windows

  1. Open your company file.
  2. Go to the Edit menu, then select Preferences.
  3. Select Accounting, then go to the Company Preferences tab.>
  4. Select the Use class tracking for transactions checkbox.
  5. If you want a reminder when you haven't assigned a class, select the Prompt to assign classes checkbox.
  6. Select OK.

Mac

  1. Go to the QuickBooks menu, then select Preferences.
  2. In the Workflow section, select Transactions.
  3. Select the Use class tracking checkbox, then close the Transactions window to save the changes.

Step 2: Set up class categories for expenses and accounts

Note: Use classes for one category only. For example, if you use classes for department, don't use classes for store locations.

You can use the Sample classes by industry as your guide.

Windows

  1. Go to the Lists menu, then select Class List.
  2. From the Class ▼ drop-down menu, select New.
  3. Enter the class name.
  4. If it's a subclass, select the Subclass of checkbox and find the class it's under in.
  5. Select OKto add it.

Mac

  1. Go to the Lists menu, then select Classes.
  2. Select the plus + icon to create a new class.
  3. Enter your preferred class name.
    Note: To create a subclass, select the checkbox and the class it's under.
  4. Select OK to create a class.

Use class tracking

You can assign a class to the following transactions:

  • Invoice
  • Sales receipt
  • Estimate
  • Sales order
  • Statement Charges
  • Refunds and credits
  • Check
  • Credit card charges
  • Bill
  • Purchase order
  • Paycheck

Since class tracking can be used in most transactions, it makes it easier for you to generate reports to compare the balances across multiple classes, departments, or locations. To do so, see how to filter, sort, or total reports by class.

Business type Sample segments
Accounting firms
  • Partners or clients
  • Locations, if more than one location
  • Types of work, such as tax, audit, consulting work, and so on
Advertising and public relations firm
  • Projects
  • Locations, if more than one location
  • Lines of business, if involves several main types of work such as advertising and public relations
Architectural firms
  • Projects
  • Locations, if more than one location
Construction companies or contractors
  • Construction divisions then subclass like Rough and Finish
  • Project supervisors, if more than one supervisors
Consulting firms
  • Consultants
  • Locations, if more than one location
Graphic design, writing, photography, and printing firms
  • Billing partners
  • Locations, if more than one location
  • Lines of business, if involves several main types of work such as printing and design
Legal offices
  • Locations, if more than one location
  • Partners or associates
  • Area of specialization, such as real estate or corporate law
  • Fee methods, such as fixed fee, contingency, hourly, or a combination
Medical offices
  • Partners
  • Locations, if more than one location
Membership organizations or user groups
  • Special interest groups (SIG)
Real estate brokers
  • Locations, if more than one location
  • Areas of business, if involves several main types of work such as property sales and property management
  • Title company
Restaurant and bars
  • Locations, if more than one location
  • Profit centers, such as restaurants and bakery
  • Types of business, such as restaurant and catering
Retail stores
  • Stores, if more than one stores
  • Product lines or departments, such as garden, hardware, and tools
Wholesale
  • Distribution centers
  • Product lines or departments, such as garden, hardware, and tools
Sales representative
  • Product lines
  • Manufacturers being represented

Services

(that bill weekly/monthly)

  • Services being offered
  • Partners
  • Locations, if more than one location

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