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Why would I use a Class on invoices in QuickBooks?

Clients often ask us why and when they should use a “Class” on their invoices in QuickBooks. We advise clients to think of classes in QuickBooks as though they were departments within a company. This should be something you need to run a profit and loss report on. For example, in a store, certain areas are named according to the customer base around which they are centered. In a clothing store, you will encounter different departments for men, women, and children. You can go down up to 5 levels for classes as needed. So you can have Men as a header class with Shoes as a subclass.

In the same way that different departments make it easier to find what you’re looking for in a store, the class distinction within QuickBooks makes it easier to look at specific portions of your company’s invoices. In other words, using classes can provide an additional level of organization to your company’s invoices. It also enables you to run budgets and Profit & Loss statements according to class. This organization is important for analyzing and understanding the success of various portions of your company. Here are some good industry specific examples of class tracking that we have seen clients use:

1) Non Profit Organization uses Classes to track their Grants.

2) Ticket Broker for local bars and clubs uses departments like, sales, marketing, accounting, to run budgets for each of their internal departments

3) Subdivision of a University uses classes to separate their book and video education side from their classroom education

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About Marjorie Adams

Our head QuickBooks trainer and guru, Marjorie Adams, is Founder and CEO of Fourlane, Inc., an award-winning consulting firm and Intuit’s #1 QuickBooks Reseller Partner. Fourlane’s team of experts offers several QuickBooks oriented services including consulting, training, programming, integration, and more. Over the years, Fourlane has helped over 10,000 customers across many different industries with their QuickBooks accounting software. Marjorie Adams is considered one of the top QuickBooks trainers in the country. She was listed on CPA Practice Advisor’s 40 Under 40 in 2014 & 2015, and has been recognized as Intuitive Accountant’s 2015 QuickBooks Desktop ProAdvisor of the Year. Marjorie sits on Intuit’s VIP Program, is a frequent contributor to Inuit Accountants News Central, and has developed Intuit’s QuickBooks Enterprise Certification training. She has also been published in The Wall Street Journal, Forbes, BusinessWeek, American Express Open, the Huffington Post, and Inc. Magazine.

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