In QuickBooks Online, what is a "class" used for?

In QuickBooks Online, a "class" is a feature specifically designed to track segments of a business. This allows users to allocate income and expenses to specific categories, which can be department-related, project-based, or any other segment that is relevant to the business's operations. By utilizing classes, businesses can generate financial reports that provide a clearer picture of the performance of different areas, making it easier to analyze profitability and make informed management decisions.

For instance, if a company has multiple locations or diverse product lines, using classes can help differentiate the financial data for each segment. This segmentation gives greater insight into how each part of the business is performing independently, which is essential for strategic planning and resource allocation.

Other options, while relevant to different functionalities within QuickBooks, do not accurately describe the purpose of classes. Managing user permissions pertains to security and access controls, categorizing financial accounts relates more to the chart of accounts setup, and analyzing inventory costs concerns inventory management rather than the broader organizational tracking that classes provide.