Class Tracking in Bookkeeping: When and Why to Use It
If your business has multiple departments, product lines, or locations, lumping everything into one set of books can make your financials messy and hard to interpret. That’s where class tracking comes in.
Download Our Free Brochure →Class tracking is a bookkeeping method that lets you tag income and expenses by category—like sales channel, team, or region—so you can generate more detailed and useful reports. Tools like QuickBooks and Xero support this feature, but it’s only helpful if it’s set up correctly and used consistently.
When Does Class Tracking Make Sense?
You should consider using class tracking if:
- You operate in multiple locations (e.g., East Coast vs. West Coast)
- You run multiple services or product lines (e.g., tutoring vs. test prep)
- You want to compare performance between business units (e.g., retail vs. online sales)
- You work with grant funding or project-based budgets
Example: Using Class Tracking in a Tutoring Business
Let’s say you own an education company that offers SAT prep, college advising, and math tutoring. With class tracking, you can tag all income and expenses under their respective categories.
At the end of the month, your P&L statement won’t just tell you total revenue—it will show how each class performed. Maybe SAT prep brings in the most revenue but has high marketing costs, while college advising is your most profitable unit. This data helps guide your business strategy.
State-Level Tie-In
In states like California and New York, many afterschool or educational businesses operate across districts. Class tracking lets you evaluate financial performance by region or school partner—critical for making staffing or investment decisions based on profitability.
Trying to track too many things manually?
Let our expert bookkeepers set up class tracking for your business so you can make better decisions—without spreadsheets.
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Download Our Free Brochure →FAQs
What is class tracking in accounting?
It’s a way to categorize transactions by business unit, location, or service line.
Can I use class tracking with QuickBooks?
Yes, QuickBooks Online and Desktop both support class tracking—though setup is key.
Do I need class tracking if I only sell one product?
Maybe not. But if you plan to expand or want to see cost breakdowns in detail, it helps.
Can Remote Books Online help with setup?
Absolutely—we set up, track, and report on classes tailored to your business model.
What’s the difference between class tracking and project tracking?
Class tracking is ongoing across time periods. Project tracking is for fixed-duration efforts.
If you want to grow smarter, start tracking smarter.
Let us help you implement class tracking and clean up your books →
