QuickBooks Class-What does it Mean to Your Business?
The terminology in QuickBooks accounting software can sometimes be confusing. Take “class” for example. The word “class” in QuickBooks is defined as a way to track the different segments of your business. Using the class feature in QuickBooks gives business owners a tool to track the income and expenses for any given period. The result? A huge return for little effort.
Let’s Look at How it Works in this Scenario:
A medical practice with four doctors can track the monthly income each doctor brings in as well as the monthly expenses related to that doctor, resulting in the monthly net income or loss for that doctor. Reports can be generated by individual doctor or for the entire medical practice.
Another example would be a contractor who performs new construction and remodel projects. Reports can be generated by individual class or for the total construction company. The use of classes is unlimited to the variety of business segments.
Where do you Find “Class”?
The class feature is in the QuickBooks software but goes unnoticed until it is turned on. One it is turned on:
- Use preferences to gain access to the field.
- Use list to define the “classes” or aka cost centers.
- Assign a class for every revenue and expense transaction entered.
Reap the Rewards
To reap the rewards of your efforts go to:
- Reports; Company and Financial; Profit and Loss by class.
You will have the ability to modify the date range and select the classes to report.
Now you can identify where you are making (or loosing) money, where to increase revenue or decrease expenses.
For more information regarding QuickBooks Class please contact us.