Intuit’s cloud accounting application, QuickBooks Online, is the preferred software choice of small business owners. And, this is not surprising. Intuit continuously improves QuickBooks Online to meet the ongoing demands of businesses. It makes performing accounting tasks a breeze.
QuickBooks Online also contains numerous features like a mobile app to manage your business on the go and class tracking. We will a talk more about the class tracking feature in QuickBooks Online.
So, What is Class Tracking Anyway?
Class tracking is a useful feature that is available in QuickBooks Online Plus only. With this feature, you will be able to track income and expenses transactions to specific projects, jobs or departments.
Although, technically speaking QuickBooks Online doesn’t feature job costing, you can make it work using class tracking. Using this feature, you will be able to track customer jobs. There is another method to track customer jobs known as the sub-customer method, but we will cover that topic in another article.
For now, you should know how to enable class tracking in QuickBooks Online.
Setting Up Class Tracking in QuickBooks Online
You can setup class tracking in QuickBooks by following these simple steps.
Step 1: Click on the gear icon on the upper right corner of the screen.
Step 2: Now, select Account and Settings listed in the sub-menu under Advanced.
You will be presented with the picture as shown below.
Step 3: Scroll down until you see the Categories section, and click on Track Classes.
And that’s it. You have just setup class tracking in QuickBooks Online.
Jobs in QuickBooks begin with an Estimate. You will be able to add Class directly within the Estimate, Invoice, Expense, Check, etc.
To add a new class, you must select Add New from the sub-menu in the Class column.
Apart from the above method mentioned above, you can also add Classes from the Class Lists as depicted in the figure below. You can access Lists from the Gear icon in the top right navigation.
Just click on All Lists. A new window will open up like the one below.
Next, you must select Classes from the Lists screen. To add a New Class, you must click on the New button. Next, you must add the required Class, and then save it.
You can track each of the jobs by creating reports in QuickBooks Online. You can create budget vs actual report,s as well as profit and loss by class report for the job.
After the job has been completed, you can remove the Class from the list. Note that a Class will not actually be deleted, but it will be made inactive when you delete it from the list. You will still be able to see classes along with the related expenses by generating a report.
For a more in-depth look at the process, click here to see a video on Class Tracking.