Track Your Sales Profits


Every business needs to know if they’re selling their products or services for the right price to make a profit. Fortunately, QuickBooks has a tool to help you do that called Class Tracking.

Once you set the preferences to use class tracking, you set up user-defined classes and use them on all income and expense transactions. Then you run an Income Statement by Class to see each class’s profitability. Once you commit to using classes, you must commit to always entering them for this feature to be effective. There is also a report at month end to show unclassified accounts to identify transactions that are missing a class designation so it can be corrected.

I have a client who uses class tracking extensively for his private counseling center to determine whether his therapy groups are making or losing money based on his overhead and other expenses.