How to Set up Classes in QuickBooks?

Do you want to go beyond the basic account-dependent tracking in QuickBooks? Using the class tracking feature offers you a personalized way to track specified expenses, classify based expenditures in several accounts and manage the accounting for occasional costs and one-off expenses that are not necessarily related to some specific account type.

QuickBooks provides a user-friendly method to set up class tracking, permitting you to run your business fast and conveniently. You get reasonable control over expense classification, which is one of the best advantages of class tracking and makes organizing expenses easy.

QuickBooks allows you to generate classes you can assign to your business transactions. This helps you track your account balances, location and business office, properties, and other relevant breakdowns of businesses. A lot of business owners have some business segments that they want to keep an eye on, so by utilizing the class tracking feature, they can define those segments and then keep track of the related account balance on various documents.

Businesses with varied departments can use classes to report account balances for a specific department.

So, in this article, you will learn the steps of how to set up classes and enable tracking of types. But before that, we must know in detail about classes in QuickBooks.

What are Classes in QuickBooks?

QuickBooks users can use the class creation feature to work with many conveniences. Classes you can create and assign to transactions made in this accounting software. This feature allows you to keep track of account balances through several breakdowns such as department, business office, location, etc. It’s also possible to make your own breakdown.

How to Create a New Class in QuickBooks?

It is good to keep things simple. When there are a lot of classes, it takes a lot of time to work with. When classes are upfront, it is easy to understand all reports.

Here are the steps to create a new class in QuickBooks:

• Open QuickBooks and go to “Settings” and then choose “All Lists.”
• Choose “classes”.
• Select the option “New” and give a name to this class.
• To add a sub-class, choose “is a sub-class” and select the main class. You can create up to five different courses.
• Choose “Save”.

Now you are done with classes set up, you can initiate tracking of your transactions based on categories.

How do Inactive Classes in QuickBooks?

If you don’t require class, you can keep it inactive so that it does not count toward the usage limits. Here are the steps to keep classes inactive in QuickBooks:

• First, open “settings” and choose “All lists.”
• Choose “classes”.
• Look for the class you want to delete.
• Now go to the small arrow next to the Run Report and choose “Make Inactive.”

Steps to Restore a Deleted Class

If you want to restore any deleted class, then follow the steps given below:

• Open Settings in QuickBooks and choose “All Lists.”
• Choose “classes”.
• Open Settings next to the print icon and choose “Include Inactive.”
• Look for the class you want to restore and choose “Make Active.”

Also Read – How to Network Quickbooks Desktop on Two Computers?

Conclusion

QuickBooks classes signify relevant parts of any company, such as store departments or product lines. You can use them to get deep insights into your sales, profitability, and expenses for every part of your business.

Creating a class is one of the best ways to manage your business conveniently in QuickBooks. When you create them and allow class tracking, it becomes easy to track all transactions and other things. To develop such classes, you need to follow all steps described above very carefully.