Classes in Quickbooks

What is Class

Classes are used in bookkeeping and make proper reports of transactions at every expense. Makes  Systematic reports of yearly profits and losses. It also facilitates its users with certain tools that make sharp comprehensions and track all expenses at any period of time. It also manages budgets by categorizes income in a suitable way. 

Steps to Setup Class in Quickbooks

• Click edits from the file menu and use preferences to access the field.
• Select All Lists and select accounting preferences from left (this defines “classes” or aka cost centers).
• Click on the Classes option in order to assign a class for each transaction entered.
• Then, click New.
• Edit the details and click Save changes and close the dialog box.

Steps to Use Classes

1. Turn on class tracking (in Company Settings or Account and Settings depending on what you see).
2. Add classes that are meaningful to your business.
3. When you enter invoices, checks, credit card charges, or other transactions, assign a class to the transaction (or detail lines of the transaction), if it makes sense.
4. Create reports by class.

How to Track

1. Select edits from the file menu.
2. Then select Company Settings.
3. Click Categories on the left.
4. You must check for the track of the class.
5. Then, click OK to save the setting.

Conclusion

• Classes basically used to maintain multi-profit businesses. It makes reports relayed to Profit and Loss by class and modifies the range of data to much extent.
• It helps to identify where to increase revenue or decrease expenses in a business.