Do you need to track you income and expenses by location, department, event or project? Then using class tracking in QuickBooks® might be just what you're looking for.
By using the class tracking feature, you can define these segments and track their associated account balances on invoices, bills, and other documents. Businesses with different departments or locations can use classes to report account balances for each department.
Let's say for example, you have a restaurant with three locations, you could create a class for each: an Uptown, a Midtown, and a Downtown for tracking account balances by location. For a farmer it might be useful to create a class for each enterprise, for example: Corn, Hogs, and Wheat.
For any given accounting period, the restaurant could create separate reports for each location and likewise, the farmer could create separate reports for each enterprise.
To turn class tracking on go to
Edit>Preferences>Accounting>Company Preferences>Use class tracking
Now that you have turned on the class tracking, you will need to set up the classes you want to use.
To do that Go to Lists > Class List. In the bottom left corner of the screen, click on Class, then select New from the menu. You'll see this
Assign a class to every transaction: I highly recommendation is to assign a class to every transaction you post to QuickBooks®. Be consistent when entering the class information on your forms and registers to ensure that this information is valid and useful. I also like to have a class called "Operating" or “Overhead” for transactions that do not apply to a specific location or project I am specifically tracking.
Once the classes are setup and you start using them with all your transactions you will be able to run reports by the classes you've set up. This will enable you to get a better picture of what location or enterprise is more profitable than others. Happy Classifying...
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