How to Set Up And Use Class Tracking In QuickBooks Desktop

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 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

  1. First, you need to open your company file.
  2. Then go to the Edit menu and then select Preferences.
  3. Now you need to select Accounting and then select Company Preferences.
  4. Here you need to select the Use class tracking for transaction checkbox.
  5. If you want the reminder to assign a class then you need to select the Prompt for the same.
  6. Now finally select oK.

Mac

  1. First, you need to go to the QuickBooks menu and then select Preferences.
  2. Then you need to select Transaction from the Workflow section.
  3. 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

  1. You need to go to the list menu first, then choose Class List.
  2. Then go to the drop-down menu from the class, then select new.
  3. Here you need to enter the class name.
  4. If this is a subclass then you need to select a subclass of checkbox and then find the class it should be under.
  5. Now you need to select OK to add it. 

Mac

  1. Now first you need to go to the List Menu, then select Classes.
  2. Then you need to select the plus icon to make a new class.
  3. 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.

  1. 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 of the 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 typeSample segments
Accounting firmsPartners 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 firmProjects Locations, if more than one location Business lines, if you need to ass many types of work like advertising and public relations
Architectural firmsProjects Locations, you can add more than one location
Construction companies or contractorsConstruction divisions then subclass like Rough and Finish Project supervisors, if there are more than one supervisors
Consulting firmsConsultants Locations, if you want more than one location
Graphic design, writing, photography, and printing firmsBilling partners Locations, you can add more than one location Lines of business, you can involve many types of work like printing and design
Legal officesLocations, 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 officesPartners Locations, you can add more than one location
Membership organizations or user groupsSpecial interest groups (SIG)
Real estate brokersLocations, 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 barsLocations, you can add more than one location You can add profit centers, like restaurants and bakery Business Types, like restaurant and catering
Retail storesStores, you can add more than one store Product lines or departments, like the garden, hardware, and tools
WholesaleAdd Distribution centers Product lines or departments, Like the garden, hardware, and tools
Sales representativeProduct 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.



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