Still struggling to create classes in your Quickbooks account? One of the many perks of choosing Quickbooks over other accounting software and programs is the ability it offers to track your expenses based on custom criteria. Rather than grouping all of your expenses into one, you can separate them into multiple “classes,” allowing you to find and access them more easily in the future.
You might be wondering why you would even need to separate your expenses into classes in the first place. After all, can’t you just wait until tax day rolls around next year to separate them? Of course you can, but it’s far easier to separate them when you initially add the to your Quickbooks account. For instance, you may want to split your expenses into various departments such as accounting, marketing, custom acquisition, shipping, etc. Not only will this streamline your business, but it will also make it easier for you to determine which aspects of your business need improving and which ones don’t.
To set up classes in Quickbooks, fire up your account and click the List menu > Class List > Class > New > and enter a name for the new class (note: it’s recommended that you choose a name related to what the class contains, such as “shipping” or “marketing.” When you are finished, record the class and repeat the process for any additional classes you wish to create. Sorry if you were expecting more, but that”s all it takes to set up classes in Quickbooks!
With your classes created, you’ll want to establish a budget for them. Doing so isn’t necessary by any means, but many business owners will find it helpful in determining exactly where their funds are going. Also, remember to assign the appropriate class to any new bills you enter into Quickbooks. You can always go back and do this later, but it’s easier to assign your bills to the appropriate class the first time around to prevent any discrepancies.
Did this tutorial work for you? Let us know in the comments section below!