When adding an expense in QuickBooks Online, have you ever noticed that little box on the right-hand side labeled “Class”? Ever wondered what it was for?
It’s actually a pretty handy organizational tool if you know what to do with it. The Class field allows you to tag or label transactions that you wish to track in their own custom reports.
If used properly, creating Classes will allow you to organize special expense items and break them down separately from your regular expense categories.
However, if you don’t organize your Classes properly, you might wind up with just a jumble of extra labels that aren’t much help for anything.