Are you thinking to go beyond standard tracking in QuickBooks? If so, you can turn on the feature of QuickBooks Class Tracking which provides you a customized way to track particular expenses, handle the accounting one-off, categorize shared and occasional expenses. The method of QuickBooks Online class tracking is user-friendly. First, you can easily create classes and then assign them to transactions in QuickBooks Online.
Additionally, by turning on the feature of QuickBooks class tracking, you can keep a close eye on certain segments of your business. Many businesses owners who have different locations or departments, they can avail the benefit of creating classes.
In this article, you will learn the steps on how to set up and use QuickBooks class tracking.
What is QuickBooks Class tracking?
QuickBooks online class tracking helps its users to track specific expenses. Along with this, you can also categorize the expenses beyond multiple accounts, organize the classes for certain transactions that are important for the group. Now, let’s check out the steps of setting up the same feature in QuickBooks Online.
You May Also Read: How to create a custom report in QuickBooks?
How to set up Classes in QuickBooks online?
To get better control categorizing expenses, you can use the feature of class tracking.
Step 1: Turn on QuickBooks class tracking
The first thing you need to do is “Turn On” Class tracking in QuickBooks Online. For this, you are provided with the simple steps that need to follow in order:
- You first require to open the company file.
- Now, go to the Edit menu and choose Preferences.
- Click on Accounting and then, select the Company Preferences tab.
- After that, you need to choose Use class following for transactions checkbox.
- Click on the Prompt to allot classes’ checkbox only if you have not allotted a class.
- In the end, choose OK.
Step 2: Set up QuickBooks Locations and Classes
Before setting up QuickBooks Online class tracking, you need to make sure that all transactions have been assigned and you have maintained the QuickBooks balance sheet by class in QuickBooks 2011 or later version. Along with this, you also require to assign a class to every posting transaction.
- First of all, you need to run the Settings and choose All Lists.
- After that, choose Classes. You can also select locations to add them.
- Click on New.
- You have to give a name to the class or location.
- At last, you need to choose Save.
Step 3: Add class tracking to Payroll
After setting up Class tracking in QuickBooks, now you need to add it to Payroll.
- In starting, you need to select the Gear icon on the Toolbar.
- After that, choose Payroll Settings.
- Click on Accounting on the Setup Overview page.
- Now choose to Customize only if prompted. If not, scroll down to view the Classes section.
- In the end, you have to choose a preference that fits your business for Class tracking in QuickBooks.
You May Also Read: What is QuickBooks?
How to use Class tracking in QuickBooks?
Class tracking in QuickBooks can be utilized to manage the following:
- Funds for public sector or non-profit expenses.
- Partners in a skilled services companies.
- Services types or product lines.
You can apply the classes in both income and expense transactions. Before using QuickBooks class tracking, you need to follow some points mentioned here:
- You need to consider the reporting requirements.
- It is required to assign classes to income and expenses both.
- You require to create other or miscellaneous classes to classify the unfitted transactions.
- For transactions that have not been classified yet, you need to create an “unclassified” for them.
Steps to manage your QuickBooks classes:
- Click on the Lists.
- After that, choose the Class List menu.
Overall, you may get the required information about QuickBooks class tracking. The steps to set up and use class tracking have been explained in the above article. By creating classes, you can track the account balances by location. The procedure of setting up QuickBooks Online class tracking takes some time but pays off in the long run.
In case, you are still worried and don’t find the aforementioned article helpful, then you are recommended to get in touch with us by dialing our QuickBooks Enterprise Support Phone Number 1-805-257-5030.