You are right that the expense side of it is very useful - I use that all the time.  However, we are a charity and have funds that are restricted to specific purposes.  Whilst we can separate them in the balance sheet manually - we do this with some difficulty - it would be so very much easier if we could have the class we assign in the income and expenditure account reflected in the bank accounts and other balance sheet items.  Hence I agree with Biggsie that classes are 'only half way there'.  It would not take a lot of development work for QB to put this right.  A cloud based standard product drives the costs of software development and maintenance down and can be spread over 1000s of users - so I don't see why they just don't do it.  All users who are charities would benefit.

Regards
David