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Deadwood Al
June 25, 2024
Question

Class Tracking sounds interesting

  • June 25, 2024
  • 1 reply
  • 0 views

We do not currently use classes in QBES. We are a nonprofit, and we have several activities each year (we are the Chamber in a popular tourist town) that we need to track income and expenses for. We also do financial tracking for some sub-committee organizations who do various fundraisers throughout the year. But I want to make sure I really understand using classes.

 

1 - We are part-way through the current year. Can class tracking be implemented mid-year? We aren't staffed to go back and re-key all prior transactions ...

 2 - For example, we have multiple advertising expense accounts, multiple printing expense accounts, etc. for each event / activity for the year. If I understand correctly, we would need only 1 expense acount (for each unique expense), and when posting to that expense we would differentiate event / activity by entering a class code. Is that correct? Or do I need to have one expense account of each unique expense for each class?

 3 - I read someplace about classes and "sub-classes". Can reports be ran by sub-class, or only classes? How deep can sub-classes go?

 4 - It seems to me that there was conflicting information on balance sheets. In Enterprise (Gold if it matters), can classes exist for asset, liability or equity accounts, or only the income statement accounts?

 5 - Does anyone have any good (thorough) references for books or articles that cover all the aspects of using classes? I find it very difficult to find all the relevant information through the QB help systems. I have also tried some of the QB "for Dummies" books, but things like Classes or Credit Cards barely get mentioned at all. I would appreciate any guidance on learning more about classes.

 

1 reply

JoesemM
JoesemM
June 25, 2024

Class tracking allows you to categorize your financial transactions according to various segments within your business, Deadwood Al. Let me share more details so you can track segments you want to keep a close eye on.

 

You can establish class tracking, even if it's in the middle of the current year. However, class tracking will only be visible on newly created transactions and not on previous ones.

 

When you organize class categories for expenses and accounts, you should use classes for only one category. For instance, if you use classes for departments, refrain from using classes for store locations. You can refer to the Sample classes by industry as a reference.

 

When it comes to reports, you can generate the Profit and Loss by Class to analyze your classes and subclasses. If you have identical subclasses under multiple classes, you might want to access a P&L report that displays only those same subclasses (for instance: Subclasses 1C, 2C, and 3C).

 

Here's how:

 

  1. Run the Profit & Loss by Class report.
  2. Select the Customize Report, then go to the Filters tab.
  3. From the Filter list, select Class, then Multiple Classes. (For Mac users, check the Class box, then choose Selected classes from the class drop-down)
  4. Select only the Subclasses you want in the report.
  5. Example: 1C, 2C, and 3C.
  6. Choose OK. The report will include the Total column for Class 1 Class 2 and Class 3.
  7. Export the report to Microsoft Excel or a similar program.
  8. Delete the Class Total columns.
  9. Recreate the TOTAL column.

 

Though class tracking can be used in most transactions, classes can also be assigned to all account types, including asset, liability, and equity accounts. When you pull up the Balance Sheet report, make sure to customize the report and filter it by class. For more details, open this link: What transactions are not supported by Balance Sheet by Class in QuickBooks Desktop?

 

I will provide you with helpful resources to assist you in effectively managing classes in QuickBooks Desktop:

 

 

Don't hesitate to tag me in your reply if you need help with your classes or related concerns with QuickBooks. I'll be more than happy to assist you anytime. Have a good one!

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