As a business owner, you are familiar with the role that your bank plays in the smooth running of your company. You may even have a relationship with several different banks or credit card processors, which is great because it means you can use more than one bank account when you make a purchase. This makes things easier for your customers, who don’t have to remember which account to use when paying by check.
However, what happens when you are writing a check in QuickBooks Online (QBO)?
In QBO, you have fewer options when it comes to payroll and bank accounts. You can either use the default bank accounts provided by the system or you can create your own. When you create your own, you cannot use more than one of them (at least not yet), so you will need to make sure you have enough funds in one of the accounts before you make a purchase.
The biggest question is: Do you need a separate class category for your payroll and banking? And if so, what should that be called?
Should There Be A Separate Class Category For Payroll And Banking?
From the outside, it might seem like there is no need for separate class categories for payroll and banking, as they appear to be subsumed by “Person”. However, that is because the categories in QuickBooks were largely designed to make your life easier when writing checks, not to provide a complete overview of your financial situation. As a result, there are a number of situations where this assumption could lead you to make a wrong decision. Let’s take a look.
When You Are Registering For A Service That Charges By The Page
If you are registering for a service that charges you by the page, then it makes sense to have separate categories for payroll and banking, as you will be paying by page view rather than transaction. If you are worried about running out of space, then make sure you create a separate folder for this service, as it will use up a huge amount of space when it comes to drafts and notes.
When You Need To Keep Track Of Several Different Accounts
Another situation where you might want to have separate categories is when you need to keep track of several different accounts. If you have several credit cards that you use regularly, then it might be a good idea to create a separate category for each one so you can easily keep track of what is going on with all of them. This is the kind of thing that can easily be handled by using the sub-accounts functionality in QuickBooks. If you use sub-accounts regularly, then you will find it very easy to keep track of everything in one place. If, however, you are not using sub-accounts, then it might be a good idea to create a separate category for each account, as otherwise, it can be difficult to keep track of what is going on with all of them. In general, it is better to over-categorize than to under-categorize, as it is easier to find what you are looking for when you have a lot of categories than it is when you have few. Creating a separate category for each account that you have is a great way to ensure you do not lose track of anything.
When You Are Paying Invoices And Receiving Credit From Customers
Another situation where you might want to have separate categories is when you are paying invoices and receiving credit from customers. If you are a business owner who takes credit cards, then this is something you have to think about. If you are deciding to take credit cards as a method of payment, then you have to decide whether or not you want to create a category for invoices and a category for payments, as they represent two very different things. It is a good idea to have separate categories for invoices and payments, as it makes it easier to keep track of what is going on. For instance, you can easily see all of the bills that need to be paid in one place, while the invoices for your products and services can be found in a separate folder, which you will easily be able to identify since they will be filed according to the category you created.
When You Need To Keep Track Of A Separate Transaction
Another situation where you might want to have separate categories is when you need to keep track of a separate transaction. If you are not sure what kind of transactions you need to keep track of, then it is a good idea to create a separate category for each one. For instance, if you need to keep track of purchases that relate to a specific project or business, then create a category for that project or business and then create a sub-category for purchases that relate to that project or business. The advantage of this approach is that it makes it easier to find the specific purchases you are looking for. You can also use the search feature in QuickBooks to find the transactions you are looking for. If you have a lot of transactions that you need to keep track of, then this is clearly the best option, as it makes things very easy to find what you are looking for.
When You Want To Keep Track Of Expenses That Are Related To A Specific Project
An even more specific case where you might want to have separate categories is when you want to keep track of expenses that are related to a specific project. If you have a specific project that you are working on, then you can use the search feature in QuickBooks to find all of the transactions that are related to that project. Once you have found the relevant transactions, you can use the filters to narrow down the list to only show items that are relevant to that project. Once you have done that, you can use the sorting feature to see the transactions in the order that they were taken, which will make it easier to figure out when payments were made and what expenses were for. This is why you should create separate categories for projects, as it makes it much easier to keep track of what is going on with each one individually. You cannot use the search feature in QuickBooks to find the categories that are relevant to your project, as the system does not offer any search options beyond the Person, Location, and Customer types. You will therefore have to use the contact information provided by the project itself to find out who to pay and what expenses are owed to. In cases like this, it is preferable to have a category for each person or group involved in the project, as it makes things easier to keep track of who is responsible for paying which expenses. In this case, you would create a category for the project, then a sub-category for each person or group involved in it, and then a further sub-category for the payments that need to be made. By applying the proper labels to each sub-category, you ensure that it is easy for everyone involved in the project to keep track of what is going on and who is responsible for paying what portion.
Although these are just a few examples of situations where you might want to have separate categories, it should be enough to convince you that there is a need for some kind of organizing principle when it comes to your check book. The key is to find the right solution for the problem at hand, as there are more than one way to skin a cat and there is more than one way to organize your check book.