Class tracking is the most important feature of QuickBooks that allows the users to track account balances by department, business office or location. Moreover, it also enables the users to keep a close eye on the segments on which they want to. However, if you also wish to track specific expenses and categorize shared expenses, you have to set up classes in QuickBooks.
This comprehensive post focuses on how to set up classes in QuickBooks so that you can start organizing your class according to class. Furthermore, if you wish to assign classes to your employees, you need to enable the class tracking feature for Online Payroll.
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Table of Contents
Prerequisites Required before you Turn On Class Tracking in QuickBooks
Before turning on the class tracking feature, consider the following points. Go through the points listed below closely.
- The users must know that they can set up the withholding tax account and item. Next time you want to charge the withholding tax, the existing withholding tax item would work.
- You have to set up the classes as per the reporting you wish to do. Also, you must organize the classes in the way you want to see the business segments on reports.
- Last, if you wish to set up the “other class” for recording the miscellaneous transactions. These include the transactions which don’t fit in any other class.
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Learn how to Set Up Classes in QuickBooks Desktop
Are you frustrated with searching for the right steps to set up classes in QuickBooks Desktop? If that’s so then your search ends here. Below we have stated some of the simple instructions for setting up classes.
Step 1: Enable the Class Tracking Feature
The steps for class tracking in QuickBooks may vary per Windows and Mac operating systems. Therefore, we have listed steps for both operating systems and apply the steps accordingly.
For the Windows Users:
- In the beginning, open your QuickBooks data file and then move to the Edit menu, followed by Preferences.
- After this, choose the Accounting tab and click on the Company Preferences tab.
- Proceed further by marking the checkbox next to the “Use class tracking for transactions” option.
- If you want to receive the notification when you haven’t allotted a class, mark the “Prompt to assign classes” checkbox.
- End the process by tapping on the OK button.
For the Mac Users:
- In the first step, move to the QuickBooks menu and click on Preferences.
- From the Workflow section, opt for Transactions.
- Now, mark the “Use Class Tracking” checkbox and then shut down the transaction window to save the desired changes made.
Step 2: Categorizing of the Expenses and accounts
Steps for Windows Users
- Initially, navigate the Lists menu and choose the Class List option.
- After this, click on the drop-down menu of Class and pick the New option.
- Now, you have to add the class name according to your accounts.
- Furthermore, for the sub-class, you have to mark the “Sub class of” checkbox. Then, you have to search for the class under this section.
- Finally, you have to click on OK to add the classes.
Steps for Mac Users
- In the first step, move to the Lists menu and hover your cursor over the Continue option.
- To generate a new class, you must tap on the Plus “+” icon and add your class name.
- Ultimately, tap on Ok to establish a class successfully.
What can you do using the class tracking feature in QuickBooks?
With the help of the class tracking feature, you can allot a class to numerous transactions. These transactions may include:
- Sales Receipt
- Sales Order
- Purchase order
- Refunds and Credit
- Statement Charges
- Credit Card Charges
Stepwise instructions to enable class tracking in QuickBooks Online
Are you having trouble turning on the class tracking feature in QuickBooks Online? If that’s so then go through the stepwise instructions listed below.
Step 1: Enable the class tracking feature
- In the initial stage, move to the Settings option and choose the Account and Settings option.
- Now, you have to click on the Advanced tab and then move to the Categories section to make the changes required.
- After this, mark the checkbox of “Track Classes”.
- Furthermore, mark the checkbox beside the “Warn me when a transaction isn’t assigned a class”. This is an optional step you may also skip.
- Head towards the Assign Classes section and then choose the “One to entire transaction” option.
- In the end, tap on the Save option followed by the Done option.
Tip: You have to choose the One to entire transaction option if you don’t want to add a class for each product you sell to the customer. Moreover, it also helps save time and allow you to impose one class to the entire invoice or sales receipt.
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Step 2: Setting up your class list
Once you have enabled the class tracking feature you can easily set your class list. Just by preparing the class lists will show the different parts of the business. You must keep the class list simple so that it should be easily understandable. In short, the simpler your classes would be, the easier it would be to understand your reports.
Instructions to Enable the Class Tracking for Online Payroll
The users have to turn on the class tracking for Online Payroll so that they can easily track the payroll transactions. After this, you have to allot a single class to all the employees or allot different classes to different employees.
- In the first step, move to the Settings option and then opt for the Payroll Settings option.
- After that, first click on the Edit icon from the Accounting Section.
- Furthermore, tap on the Edit icon from the Class Tracking section and then pick how you wish to track the transactions.
Note: If you cannot find the Class Tracking section within the Accounting Preferences, ensure you have enabled the class tracking feature. If the classes are turned off, switch them on and repeat the above-listed steps. Whereas, if classes are enabled, switch it off, sign out, and then log in again to enable the class tracking feature.
- Later on, hit the Continue option and then click Done.
- You are supposed to enter a class for every employee. Alternatively, you may also assign one class for all of the employees.
- In the end, to save your preferences, click on Continue and then on the Done option.
Hopefully, using this post, you can now easily set up classes in QuickBooks Desktop and Online. Thus, you can track your transactions by class, department, or product line. However, if you still get stuck at any of the above-listed points, contact our QuickBooks experts via email or live chat.