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Class Tracking in QuickBooks for Law Firms- Instructions

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Class Tracking in QuickBooks for Law Firms- Tutorial: A picture of the

Class Tracking in QuickBooks for Law Firms: Overview

            You can enable class tracking in QuickBooks for law firms to classify all transactions for reporting purposes. When you use class tracking in QuickBooks for law firms, the classes often represent individual lawyers, partners, or departments within the firm. You can then create reports within QuickBooks that can detail transaction amounts by class. For example, if you create a class for each partner in a law firm, then you can easily review the income earned by a particular law firm partner by using classes. You could also generate a report that lists all transactions classified to a specified partner. However, before you can create the classes within your company file, you must first enable class tracking in QuickBooks for law firms within your law firm’s company file.

            To enable class tracking in QuickBooks for law firms, select “Edit| Preferences…” from the Menu Bar to open the “Preferences” window. Then click the “Accounting” icon at the left side of the window. In the area to the right, click the “Company Preferences” tab and then check the “Use class tracking for transactions” checkbox. You should also check the “Prompt to assign classes” checkbox to remind the person that performs data entry within QuickBooks to classify all transactions entered. When finished, click the “OK” button to enable classes.

            Next, enter the partners and/or departments by which you want to classify your transactions into the “Class List” within QuickBooks. You can open this list by selecting “Lists| Class List” from the Menu Bar. Within the “Class List” window, you can see two default classes shown. You can rename these two classes if desired, by simply editing the classes, or you can delete them and create new classes for your law firm.

Class Tracking in QuickBooks for Law Firms- Instructions: A picture of the “Class List” in QuickBooks Pro.

Class Tracking in QuickBooks for Law Firms- Instructions: A picture of the “Class List” in QuickBooks Pro.

            To edit a class, first select the class to change in the “Class List” window. Then click the “Class” button in the lower-left corner of the window. Then select the “Edit Class” command from the pop-up menu that appears. In the “Edit Class” window, enter a description into the “Class Name” text box. Then click the “OK” button to save it.

            To delete a class that has not been used in any transactions, select the class. Then click the “Class” button in the lower-left corner of the window. Then select the “Delete Class” command from the pop-up menu that appears. In the “Delete Class” confirmation dialog box that appears, click the “OK” button.

            To create a new class, click the “Class” button in the lower-left corner of the “Class List” window. Then select the “New” command from the pop-up menu that appears. In the “New Class” window, enter the name of the partner/department into the “Class Name” text box. Optionally, to make this new class a “subclass” of another existing class, for example- the lawyers in a department, check the “Subclass of” checkbox. Then use the adjacent drop-down to select the main class underneath which to classify the current entry. When finished, click the “OK” button to add the new class into your “Class List.”

            In the future, when entering transactions in QuickBooks, use the “Class” drop-down menu to select the desired value and classify the transactions. If you checked the “Prompt to assign classes” checkbox in the “Preferences” window, any unclassified transaction you create will prompt you to classify it before closing the transaction window if you accidentally save an unclassified transaction in the future. This creates a valuable double-check to ensure appropriate classifying of transactions for accurate reporting.

Class Tracking in QuickBooks for Law Firms: Instructions

  1. To enable class tracking in QuickBooks for law firms, select “Edit| Preferences…” from the Menu Bar to open the “Preferences” window.
  2. Click the “Accounting” icon at the left side of the window.
  3. Click the “Company Preferences” tab to the right and then check the “Use class tracking for transactions” checkbox.
  4. Also check the “Prompt to assign classes” checkbox to remind whomever performs data entry in QuickBooks to classify all transactions entered.
  5. When finished, click the “OK” button to enable class tracking in QuickBooks for law firms.
  6. To open the “Class List” in QuickBooks to enter the partners and/or departments, select “Lists| Class List” from the Menu Bar.
  7. Within the “Class List” window, there are two default classes you can rename, if desired, by editing the classes or deleting them and creating new classes.
  8. To edit a class, select the class to change in the “Class List” window.
  9. Then click the “Class” button in the lower-left corner of the window and select the “Edit Class” command from the pop-up menu that appears.
  10. In the “Edit Class” window, then enter a new description into the “Class Name” text box.
  11. Then click the “OK” button to save it.
  12. To delete a class that has not been used in any transactions, select the class to delete.
  13. Then click the “Class” button in the lower-left corner of the window.
  14. Then select the “Delete Class” command from the pop-up menu that appears.
  15. In the “Delete Class” dialog box that appears, click the “OK” button.
  16. To create a new class, click the “Class” button in the lower-left corner of the “Class List” window.
  17. Then select the “New” command from the pop-up menu that appears.
  18. In the “New Class” window, enter the name of the partner/department into the “Class Name” text box.
  19. To make this new class a “subclass” of another class you have created, check the “Subclass of” checkbox.
  20. Then use the adjacent drop-down menu to select the main class underneath which to classify the current entry.
  21. Click the “OK” button to add the new class into your “Class List.”
  22. In the future, when entering transactions into QuickBooks, use the “Class” drop-down menu to select the desired value and classify the transactions, as needed.
  23. If you checked the “Prompt to assign classes” checkbox in the “Preferences” window, any unclassified transaction you create will prompt you to classify it before closing the transaction window if you accidentally save an unclassified transaction in the future. This creates a valuable double-check to ensure appropriate classifying of transactions for accurate reporting.

Class Tracking in QuickBooks for Law Firms: Video Lesson

            The following video lesson, titled “Enabling Class Tracking for Law Firms,” shows you how to enable and manage class tracking in QuickBooks Pro. This video is from our complete QuickBooks Pro training for lawyers, titled “Mastering QuickBooks Desktop Pro Made Easy for Lawyers v.2019.”

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