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
- Open your company file.
- Go to the Edit menu, then select Preferences.
- Select Accounting, then go to the Company Preferences tab.>
- Select the Use class tracking for transactions checkbox.
- If you want a reminder when you haven't assigned a class, select the Prompt to assign classes checkbox.
- Select OK.
- Go to the QuickBooks menu, then select Preferences.
- In the Workflow section, select Transactions.
- 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.
- Go to the Lists menu, then select Class List.
- From the Class ▼ drop-down menu, select New.
- Enter the class name.
- If it's a subclass, select the Subclass of checkbox and find the class it's under in.
- Select OKto add it.
- Go to the Lists menu, then select Classes.
- Select the plus + icon to create a new class.
- Enter your preferred class name.
Note: To create a subclass, select the checkbox and the class it's under.
- Select OK to create a class.
Use class tracking
You can assign a class to the following transactions:
- Sales receipt
- Sales order
- Statement Charges
- Refunds and credits
- Credit card charges
- Purchase order
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|
|Advertising and public relations firm||
|Construction companies or contractors||
|Graphic design, writing, photography, and printing firms||
|Membership organizations or user groups||
|Real estate brokers||
|Restaurant and bars||
(that bill weekly/monthly)