QuickBooks desktop has the ability to perform class tracking. What is class tracking? One can create classes that one can assign to transactions. A business owner may wish to divide his business up into segments. Some examples are: departments, location, separate properties, and any other meaningful breakdown of one’s business. By using the class tracking feature, one can create these segments and track their account balances on invoices, bills, and other documents.
Some advice on creating classes:
- Create classes on the basis of what type of reporting, one wants to do, and consider how your business segments should appear on the reports.
- Create a class as “other” to cover transactions that do not fit in any other class that one has defined.
- Do not use classes for two different reasons: for example departments and locations.
- One should consistently fill out the class information on financial transactions to ensure that the information stays valid and useful.
Now, I will discuss the class tracking reports.
- The Profit and Loss by Class report shows the profit and loss by each segment that one tracks in QuickBooks.
- The Profit and Loss Unclassified report shows the profit and loss from all unclassified transactions. This report is helpful to identify unclassified transactions in your company file.
- The Balance Sheet by Class report shows the balance sheet of each part of your business that one tracks by class in QuickBooks.
In conclusion, the class tracking feature can help a business owner better manage each part of their business. At St. Louis Accounting Services, we offer a full range of QuickBooks services. If one has questions about class tracking or wishes to turn on class tracking in QuickBooks, one may call us at 314-718-0956 or email us at firstname.lastname@example.org. Please contact us as soon as possible so that one can better manage their business