How to Create a Profit and Loss by Class in QuickBooks?

Every business is divided into different segments, such as sales, product development, manufacturing, and so on. Each department has its own set of income and expenses. If you want a comprehensive view of the financial standing of your business, you need to be able to track the income, expenses, and profitability of each business segment. And that is exactly where QuickBooks class tracking comes to help. This blog will give you an overview of how you can create Profit and Loss by Class report in QuickBooks. Since the steps may vary depending on your software, you can call the QuickBooks phone number and ask for help before you proceed.

Steps to Create a Profit and Loss Report in QuickBooks

Step 1: Turn on Class feature: Open QuickBooks and press the ‘Edit’ option. Go to the ‘Preferences section and select ‘Accounting.’ Open the ‘Company Preferences’ section and look for the ‘Use Class Tracking’ and ‘Prompt to Assign Classes’ options. You will need to checkmark both the boxes and then press ‘OK’ so that the class tracking option is enabled.

Step 2: Set the class codes for your business: Since only admins can create classes you will need to log in using the admin credentials. Open the ‘Settings’ and go to ‘All Lists.’ Click on the ‘Classes’ option and then press ‘New.’ You will be asked to enter a name for the class, which in this case can be ‘Profit and Loss.’ In case you need a more detailed report, you can also add a sub-class and then save the changes.

Step 3: Organise your transactions by class: After your classes are set up, you can tag a class to each row or item in any transaction to get a clear picture of your profitability. You can select the type of transaction you want to record and then add the relevant details. You will then need to press the ‘Class’ down arrow button and then assign a class to the invoice or receipt. Once you are done assigning the classes you can save your transaction.

Step 4: Run the Profit and Loss by Class: After you finish assigning classes to all your transactions, you can go to the ‘Reports’ section and then press ‘Standard.’ If you want to review your profitability by class you will need to navigate to the ‘Business overview’ group of reports, and then select ‘Run Profit and Loss by Class.’ QuickBooks will automatically create your profit and loss report that groups your income, expenses, and net income by class.

If you have any doubts about the steps mentioned above, you can always get in touch with the QuickBooks customer support number and speak to a certified expert to help you create a Profit and Loss report in QuickBooks. Accounting software experts and technicians are available 24 hours a day to help you resolve any error or clear any doubts you may have about your QuickBooks software.