The class feature in QuickBooks can be a valuable and useful tool if used properly. I feel that class tracking is one of the most underutilized tools in QuickBooks. The reason this feature is not used more often is because the general QuickBooks user does not understand what the class tracking feature is or what it can do for their business.
The class feature is used to track different segments of a business. Examples of different ways to use class tracking can be for businesses with multiple locations, different departments, or different streams of revenue.
The best use of the class system that I have seen is to use it to track sources of income. Each time the business makes money that particular transaction gets assigned a class which references how the money came into the business.
If the business came from a referral, an inbound lead, an internet search or from a networking event it is all tracked through the class system.
Then at any point in time the business can run a report that will show the source of every penny they ever made. The level of detail within the class list is totally up to the business owner or QuickBooks user.
To turn on the class feature within QuickBooks go to Edit/Preferences/Accounting Preferences/Company Preferences tab. Now put a check mark next to “Use Class Tracking.” The class list can be found under Lists/Class list. Like any other list in QuickBooks you can easily add, delete or edit items on the list.
The class feature in QuickBooks is certainly not useful for every business. However, those that can find a use for class tracking may find it to be one of the more valuable tools that QuickBooks offers.
