Managing finances effectively is crucial for small businesses, especially when you want to track transactions by different categories like departments, locations, or projects. That’s where Classes in QuickBooks come in! This powerful feature lets you organize your transactions for more detailed financial insights and accurate reporting.In this guide, we’ll explain how to create and use classes in QuickBooks to streamline your financial tracking.What Are Classes in QuickBooks?Classes in QuickBooks are a way to categorize transactions beyond the standard Chart of Accounts. They allow you to track income and expenses for specific segments of your business, such as:Departments (e.g., Sales, Marketing, Operations)Locations (e.g., different stores or offices)Projects or Events (e.g., special campaigns or contracts)Using classes helps you see which areas of your business are most profitable and where you may need to cut costs.How to Enable and Create Classes in QuickBooks1. Enable Class TrackingBefore you can use classes, you’ll need to enable the feature:Go to the Settings menu in QuickBooks.Select Account and Settings > Advanced.In the Categories section, turn on the Track Classes option.Save your changes.2. Create a New ClassOnce class tracking is enabled, you can start creating classes:Go to the Lists menu and select Classes.Click New to add a class.Enter the class name (e.g., “Marketing Campaign 2025”)