How do I setup a chart of accounts for multiple departments (classes) that will each have their own income statement, but will all roll up into one balance sheet?

Welcome to the Community, @michelled14.

The ability to set up or track multiple classes to the chart of accounts is currently unavailable. The Class tracking feature is a category that you can only add to an entire transaction or in each line item.

For more information about the feature, consider checking out these articles:

• Get started with class tracking in QuickBooks Online.
• Track your transactions by class.

I can see how having this option would be helpful for you and your business. Rest assured that I'll pass along your suggestion to our Product Developers. They're always looking for ideas from users to consider how to improve QBO.

In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.

Please leave a comment in this thread if you have any other issues or concerns. I'll be here to help. Have a great rest of the day!

I was told when I purchased QB Advanced that I could track expenses by department and show departmental income statements (budget and actual).  If this can't be done using classes, do I need to use locations instead? 

Hello there, @michelled14.

In QuickBooks, location tracking is for reporting purposes and is used to categorize data from different locations, offices, regions, outlets, or departments of the same company. 

Also, this feature lets you see all the payments for one location and deposit them as a group.

Additionally, QuickBooks can't locate the user's location when creating transactions. 

To learn more about Location Tracking feature in QuickBooks App, you can check these articles: 

• How to set up and use location tracking.
• How to set up and use class and location tracking.

Don't hesitate to click the Reply button below if you have any other questions. Have a nice day!