What do classes help categorize in QuickBooks Online?

Classes in QuickBooks Online are a powerful tool that helps users categorize and track income and expenses. By assigning classes to transactions, businesses can better understand their financial performance across different segments, such as departments, locations, or specific projects. This organization allows for more insightful reporting, enabling users to analyze profitability and manage budgets effectively.

For instance, a company may use classes to differentiate between various branches or product lines, facilitating a clearer picture of where revenue is generated and expenses incurred. This categorization can significantly enhance decision-making and strategy development.

The other choices relate to different aspects of bookkeeping and financial management but do not encompass the specific organizational capability provided by classes. Customer details focus on individual client information, payment methods pertain to how transactions are processed, and products and services are relevant to inventory and sales but do not directly categorize financial performance metrics like income and expenses do.