You're on the right track, @trishd00n. I'm here to guide you on setting up your preferred Chart of Accounts display in your client's QuickBooks Desktop (QBDT) account.
Class tracking allows you to monitor your business based on department, office, and location. At the same time, this feature provides a better understanding of your business segment's sales, expenses, and profitability.
Please know that there are only selected transactions where you can assign a class. These are the following:
- Invoice
- Sales receipt
- Estimate
- Sales order
- Statement Charges
- Refunds and credits
- Check
- Credit card charges
- Bill
- Purchase order
- Paycheck
Before proceeding, I recommend creating a backup of your company file. This ensures you can restore your original file if any issues arise during the process.
Let's move on and set up your classes in your QBDT company file. Firstly, you'll need to enable this feature:
- Open your QBDT.
- Head to the Edit menu, then pick Preferences.
- Go to Accounting, then the Company Preferences tab.
- Under Class, tick the Use class tracking for transactions checkbox. Also, if you wish to be reminded when you haven't assigned a class, you can check the Prompt to assign classes checkbox.
- Select OK.
Once done, we can now create classes. Here's how:
- Go to Lists, and select Class List.
- Hover down to the Class dropdown, then click New.
- Add the necessary information.
- Hit OK once done.
Refer to this article for reference: Set up and use class tracking in QuickBooks Desktop.
Please know that QBDT will automatically add accounts that best fit your client's business. However, since you want to customize their Chart of Accounts, you can create new ones to match your preffered information:
- Head to the Lists menu, and select Chart of Accounts.
- From the Account dropdown, click New.
- Choose an account type, then Continue.
- Ensure that the data is accurate.
- Select Save & Close.
See this article for reference: Add, edit, or delete accounts in QuickBooks Desktop.
Also, you can consider switching to QuickBooks Online (QBO). Our QBO Plus and Advanced plan has a class tracking feature that allows you to track and categorize your business seamlessly.
However, please know that there are some features and functionality in QBDT that aren't present in QBO. Nonetheless, QBO is still a great cloud accounting service that can carry out important business-related tasks.
For more information, please check out this article: Learn about switching from QuickBooks Desktop to QuickBooks Online.
Additionally, you can check out these articles to learn more about organizing your QBDT chart of accounts:
You can use the reply button if you need further help in managing your chart of accounts. I'll always have your back.
