September has arrived and many are sharpening pencils as well as skills. If you are managing multiple revenue streams and looking for a good way to assess what is working and what is not, grab your favorite note taking device and explore the ABC’s of “Classes”, and how it might provide you a clearer economic path.
Maybe you need to track product and service lines in detail. QuickBooks Classes differentiate transactions by departments, locations, product line, service type or other defining category relevant to your business or personal finance preference. QuickBooks keeps it easy and clean using the same chart of accounts across all Classes. Run a report and you will quickly see the line of business metrics.
When setting up Class Tracking think about
- How do you want to see your business segmented on your financial reports? Classes will capture not only income and expense, but also assets, liabilities, and equity transactions.
- Be consistent in how you enter class information on registers to be sure that your financial reports are accurate.
- Need additional specifics? Set up “Sub-Classes” under the main Class.
Once you have mapped out your system you will have the ability to analyze your business finances from different perspectives…using built in reports “by class”.
When you might use Classes
- A business with two or more locations – like a grocery store – could use to analyze the profitability of each location.
- A contracting business with both maintenance and installation services may want to track the return on investment of each service separately. Or, perhaps need to track by a single family, commercial, or renovate and sell investment property.
- A Non-Profit will track income and expenses by grant, event or project.
- A Property Management Company might track by tenant within a single location, or for each property location.
- A service business may be interested in tracking the location of current clients, in order to increase marketing in an untapped area.
You want to know if you are getting paid for your hard work – where, how much and when your money is coming and going, and most importantly what’s left for you. Class tracking is a great tool to do this.
If you have questions about classes or other accounting questions, please contact me or make an appointment now, to ensure that you are focusing your hard work, passion and commitment for creating value in the right direction.