If you are looking at how to set up and use class tracking in QuickBooks Desktop then we are here to give you the solution through this article. With the help of Class tracking, you can track the account balance by the department, office location, different properties, or any other meaningful breakdown of your business. Also, this will help you to track segments that want to keep close tracking.
Steps to setup class tracking in QuickBooks Desktop:
Step 1: Turn on class tracking
Important Note!
- If you set up the withholding tax account and the item once then from the next time you need to chargeoff withholding tax and use your existing withholding tax item only.
- You should set up class tracking based on the type of reporting you to need and also think that how would you like to see your business segments on the reports.
- You have to set up another class to classify transactions which are not fit with any class you defined.
Windows
- First, you need to open your company file.
- Then go to the Edit menu and then select Preferences.
- Now you need to select Accounting and then select Company Preferences.
- Here you need to select the Use class tracking for transaction checkbox.
- If you want the reminder to assign a class then you need to select the Prompt for the same.
- Now finally select oK.
Mac
- First, you need to go to the QuickBooks menu and then select Preferences.
- Then you need to select Transaction from the Workflow section.
- Now you have to select the Use class Tracking checkbox, and then you need to close the Transaction window to save the changes that you have made.
Step 2: Learn to Set up class categories for expenses and accounts
Important Note: You should use classes for one category only. If you are using classes for the department then you should not use classes for the store location.
Also, you can use the sample classes by the industry as your guide.
Windows
- You need to go to the list menu first, then choose Class List.
- Then go to the drop-down menu from the class, then select new.
- Here you need to enter the class name.
- If this is a subclass then you need to select a subclass of checkbox and then find the class it should be under.
- Now you need to select OK to add it.
Mac
- Now first you need to go to the List Menu, then select Classes.
- Then you need to select the plus icon to make a new class.
- Here you need to Enter the Preferred class name.
Note: If you need to create a subclass then you need to select the checkbox and the class it is under.
- Then you need to press OK to create a class.
How to use class tracking
You can use a class with the below transactions :
- Invoice
- Sales receipt
- Estimate
- Sales order
- Statement Charges
- Refunds and credits
- Check
- Credit card charges
- Bill
- Purchase order
- Paycheck
Class tracking can be used in most transactions, so it makes it easier to create reports to compare the balances between multiple classes, departments, or locations. To do this you need to see how you can filter, sort, or total reports by class.
Sample classes by industry
| Business type | Sample segments |
| Accounting firms | Partners or clients Locations, if you need to add more than one location Work types, Like tax, audit, consulting work, and etc |
| Advertising and public relations firm | Projects Locations, if more than one location Business lines, if you need to ass many types of work like advertising and public relations |
| Architectural firms | Projects Locations, you can add more than one location |
| Construction companies or contractors | Construction divisions then subclass like Rough and Finish Project supervisors, if there are more than one supervisors |
| Consulting firms | Consultants Locations, if you want more than one location |
| Graphic design, writing, photography, and printing firms | Billing partners Locations, you can add more than one location Lines of business, you can involve many types of work like printing and design |
| Legal offices | Locations, you can add more than one location Partners or associates you can add an Area of specialization, like real estate or corporate law Fee methods, like fixed fee, contingency, hourly, or a combination |
| Medical offices | Partners Locations, you can add more than one location |
| Membership organizations or user groups | Special interest groups (SIG) |
| Real estate brokers | Locations, you can choose more than one location area of business, if you want to involve many types of work like property sales and property management you need to add the Title company |
| Restaurant and bars | Locations, you can add more than one location You can add profit centers, like restaurants and bakery Business Types, like restaurant and catering |
| Retail stores | Stores, you can add more than one store Product lines or departments, like the garden, hardware, and tools |
| Wholesale | Add Distribution centers Product lines or departments, Like the garden, hardware, and tools |
| Sales representative | Product lines Manufacturers being represented |
| Services(that bill weekly/monthly) | Add services that being offered Partners Locations, you can add more than one location |
Winding Up!!
Here we have discussed how to Set up and use class tracking in QuickBooks Desktop. We hope you find it very helpful and after reading this article you will be able to set up the class tracking on your own and take advantage of this feature of QuickBooks Desktop.