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November 26, 2024
Question

Tags Vs. Classes for a material supply business

  • November 26, 2024
  • 1 reply
  • 0 views

I run a material supply company that sells construction materials to development projects. All of our sales are through various development projects. Sometimes we sell one category/item (Ex. Doors) to a project. Other times, we sell multiple categories (Ex. Doors, security cameras, electronic access, etc.). 

 

First, we need to be able to track a given jobs overall profitability across all product categories (both revenue and expense - aka job costing).

 

Second, we'd like to track each categories profitability throughout a project. (Ex. Total revenue of doors versus total expenses of doors to see gross profit of door sales on a single project) 

 

Third, we'd like to track each categories performance compared to others (Ex. how much revenue did we generate selling doors versus security cameras over a certain period of time)

 

I understand there are tags, classes, and projects that can be used for these functions, but I'm trying to understand where and how to use each feature relative to what I want to track. 

 

Can someone make a suggestion on how to leverage these features for my specific business? 

 

Thank you in advance for any help!

1 reply

Candice C
November 26, 2024

Hey there, @Mwayne12

 

Welcome to the Community! 

 

Tags: Tags are customizable labels that let you track transactions however you'd like. You can tag invoices, expenses, and bills. Group tags together and run reports to see how specific areas of your business are doing. They don't impact your books. Instead, they're a way for your team to track the info that matters most to you.

 

Classes: Use classes to track your transactions by departments, product lines, or any other meaningful segments in your business. So when it’s time to run reports, you have a clear picture of each segment’s financial health. Then, you can use this info to set a budget goal for each class. 

 

Projects: Use Projects in QuickBooks Online to track your project’s profitability. You can add project income, expenses, labor costs, and run project-specific reports from a single dashboard. If you need to, you can add old transactions to new or ongoing projects. 

 

Review all the guides below to get a better understanding of all and a comparison of other features we have as well: 

 

 

Feel free to come back and ask any other questions you may have. Hope you have a wonderful day!