TIP: Use classes to classify your income and expenses by department, business office or location, separate properties you own, or any other meaningful breakdown of the business you do.
In QuickBooks®, classes give you a way to classify your transactions. By using classes you can keep your chart of accounts simple and meaningful by limiting the number of accounts that are added to classify income and expenses.
For example, a general contractor might classify all income and expenses as relating to either “residential” or “commercial” work. A farmer might create a class for each enterprise such as "Corn," "Hogs," and "Soybeans." At the end of an accounting period, the contractor could create a Profit and Loss report with columns for the residential and commercial parts of the business, or even separate reports. Likewise, the farmer could create a Profit and Loss report with columns for each farm enterprise, or separate reports for each enterprise.
