TopicHow to Setup & Use QuickBooks Class Tracking?
The more your business grows, the more critical it will be for you to leverage accounting tools to grow your business. However, that growth can also make accounting and reporting more difficult.
Once your business has multiple departments or product lines, it can be hard to separate the performance of one particular area from the whole. While your business may be profitable, you may have one particular product category that’s a complete flop.
By eliminating (or improving) the one category that’s fallen behind, your business as a whole could profit even more.The overall point is that as your business expands, segmentation becomes more important. Class tracking in QuickBooks is a feature that allows you to group expenses and invoices. You can segment by location, department, or any other way you categorize your business.
What Is Class Tracking In QuickBooks?
Class tracking in Quickbooks is an opt-in feature that allows users to group expenses or invoices by location, department, or any other meaningful segment of your business. According to QuickBooks’ own guide, you can assign a class to many types of transactions, including:
Credit Card Charges
Refund And Credits
As you can see, nearly all of the most common transactions can be assigned a class. And that’s a good thing because it makes it easier to filter by multiple classes, departments, or locations to create reports.