Why to use different functions in QBO (tags vs class vs project etc.)

Hello abc12341,

It's awesome to hear that you're getting started with QuickBooks Online! While non-profits are different from regular businesses, I know that it's still helpful to organize the data in certain ways to make managing the information and taking care of remittances easier. While I can't direct you on the best way to set up the non-profit's books, I can highlight and provide information on the features you've touched on here.

Class tracking, projects, tags, location tracking, and more are simply various was to organize and view your data. For instance, classes could be used for tracking departments, teams, products, whatever it is you'd like, and then you can run reports by class to see the associated transactions. Here are a couple of articles about that.

• Get started with class tracking in QuickBooks Online

• Track your transactions by class

Projects is useful for a specific set of work that you might be doing for a customer. It allows you to easily track sales, expenses, time, and other data related to the job or project all in one place so that you can see the related information, balances, and so forth. I've also pulled a couple of articles for you about that feature.

• Track income, costs, and profitability by project

• Projects FAQ

Tags are one of the newer features in QuickBooks Online and can be used on various types of transactions pretty much however you'd like. There are a couple of great articles that go into more detail with how you can go about using this feature, so I'll leave you to get started with reading these.

• What are tags and why should I use them?

• Tag transactions in QuickBooks Online

I see you mention that you only have one location at this time, but if you ever do expand to more locations, you can consider location tracking, which gives you the opportunity to group transactions in relation to which location they apply to. Here's more information if you'd like to check it out: Set up and use location tracking

Keep in mind, you don't need to use all of these features if you don't think they'll be useful to you, but if you do see value in them for the non-profit, then feel free! If you'd like to consult someone about how to best set up your books, I recommend speaking with an accounting professional. They have the know-how to get you on track in a way to optimize your bookkeeping. If they know QuickBooks Online, that's an even bigger asset!

The My Accountant tab in QuickBooks Online is useful for connecting with an accountant. You can invite an accountant you're already working with as a user to your books or you can use the Find a pro to help button to check out our database of QuickBooks-certified accountants near you. If you are an accountant yourself, it may be worth discussing these features with a colleague to brainstorm the ways you can best put them to use.

I hope this has helped bring some clarity to these options. Please don't hesitate if you have further questions from the QuickBooks functionality side of things. I'd be happy to continue helping however I can!