What is class tracking in QuickBooks?
Class tracking is a QuickBooks feature that allows the user to categorized income and expenses. Moreover, store locations (if more than one store), product lines, or departments. In addition, services offered (for the service industry that usually bill weekly/monthly) and partners or clients. The purpose of class tracking is to give an idea of what’s going on in the business. For instance, a department store. Department store is retail with many kinds of merchandise arranged in departments. Class tracking a department store will give an idea of which goods have the highest income. As well as what location contributes the lowest to highest income. Class tracking helps in decision-making. It plays a huge role in macro managing large businesses.
Class Tracking Vs Job Tracking
Class tracking talks about grouping expenses by segment while job tracking talks about paycheck details. Paycheck (salary) is a part of the expense. Paycheck (salary) is included in class tracking expenses but job tracking is another thing. Job tracking means job cost tracking. Each employee has different rates and some work part-time. Job tracking’s purpose is to come up with paycheck billable details. In addition, for tax allocation purposes.
Where is class tracking in QuickBooks?
Class tracking in QuickBooks is located in the settings. Find the gear icon, click it then select company settings. Under the company, settings go to categories and click track classes and or track locations. After that, enable the track classes by checking the track classes box. It will then show you another option of which gives a warning whenever a transaction isn’t assigned a class. You might want to check it too for accurate class tracking. The track location settings have more options namely the department, division, property. Moreover, store, territory, or location whichever is appropriate to your business tracking. After setting up the desired class tracking click save and done. This lets you track account balances by department, location, separate properties you own, or any other breakdown of your business.
This is what the track class settings look like:
Why is important?
It is important because it gives detailed reports. For instance, a non-profit organization. You may track the events that are significant to the charity like which fundraising is effective. By class tracking, you can have an insight on what fundraising idea to double down. Another example is the marketing or promos for retail industries. Class tracking gives you reports on what marketing strategy generates more income as well as an expensive marketing strategy. Regarding promos, class tracking gives you insights into what promo is effective and what’s not. Given these reports, it helps the management decide effectively and efficiently. Class tracking is also a control measure. Because you can track a certain class, it gives you reports of what certain account is overspent or overused. Class tracking is also used in comparing the previous year’s performance to the current year’s performance.
What are the transactions that can be assigned with class?
You can assign class tracking to the following transactions:
- Check
- Purchase Order
- Credit Card charges
- Refunds and Credits
- Bill
- Sales Receipts
- Sales Order
- Invoice
- Paycheck
- Estimates
- Statement Charges
How to filter, sort, or total reports by Class
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