QuickBooks is the most versatile accounting software in the market which can be easily hosted on the cloud as well. Most of the people prefer the cloud-hosted version of the QuickBooks while others go for the desktop one.
There are many features in QuickBooks, which makes it an all in one accounting software and one such function is the class and location tracking.
The class tracking gives us the standard account-based tracking in the software. With the user-friendly option of QuickBooks for class tracking and running quickly, you won’t find a problem during the process.
The classes in a business support it with department or location by report account balance for each and every department. In order to get enhanced control over expense categorization, you use class and that’s because of the primary benefit offered by the class.
The class track feature of the QuickBooks is one of the most helpful and useful features through which you can class track your income and expenses by department, project, property, and location.
But when you mix class tracking with location tracking then it becomes a more meaningful solution.
In this blog post, we will be describing one of the simplest methods for using the class and location tracking in QuickBooks and allow you to use it for making important business decisions.
Step by Step Process of Creating Class in QuickBooks
- First of all, load the main page of QuickBooks application.
- After that, enable the class tracking option in your company profile.
- Now from the Menu bar, choose your class list. In order to setup class categories for your expenses and accounts, click on the class list.
- Then at the bottom of the page, click the arrow next to the class button.
- For creating a new class, click on “New”
- You should also enter the name associated with the class. If you can further break the class, then you should put a check in the box next to subclass and put the information in the text field.
Avoid These Mistakes in Class Tracking
- Classes can be helpful for workarounds: You should focus on your main work and assign the class of each transaction. This is because you work on different items of an account and you never properly list them.
- Balance sheet by class: In order to learn more about the balance sheet, you should always search on balance sheet by class because it gives a better and clear picture of your financial status.
- Use class on posting transactions: Assigning task to every posting invoice. Like when you give the bill to your customer by using the invoice, then the invoice posts transaction and you assign the class for the invoice.
- Run a profit loss unclassified report: You should always assign the class before creating your profit and loss reports. It is one of the easiest ways of memorizing the class of profit and loss.
Using the class and location tracking can prove to be very useful for the QuickBooks users. It can save time and reduce the workload from your mind while giving you maximum results.