What feature allows you to track different categories of business expenses in QuickBooks Online?

The feature that enables you to track different categories of business expenses in QuickBooks Online is the use of Classes and Locations. Classes allow businesses to categorize transactions by specific areas of the business, departments, or types of products or services, offering granular insight into how money is being spent across different segments. Locations provide a way to track finances based on geographical areas or store locations, making it easier for businesses with multiple sites to analyze performance.

This categorization through Classes and Locations also enhances reporting capabilities, allowing users to generate detailed reports that show income and expenses segmented by the selected categories. Thus, transitioning seamlessly from tracking transactions to analyzing the financial health specific to classes or locations becomes possible. This feature is vital for understanding the financial performance of various parts of a business, supporting informed decision-making.

The other options—transaction filters, invoice customizations, and reports generator—do not provide the same level of category tracking for expenses as Classes and Locations do. Transaction filters help narrow down transactions based on criteria but do not categorize them. Invoice customizations relate to how invoices are designed and presented, not to expense tracking. The reports generator allows for the creation of reports but relies on the categorization set up by Classes and Locations to provide meaningful insights.