Managing the finances of an online business can be a complex task. It is essential to have accurate and easily understandable profit and loss (P&L) reports that provide insights into the performance of different product groups. Automation of repetitive tasks is also crucial to save time and allocate resources effectively. Synder offers a solution that addresses both of these needs for online businesses.
In this guide, we will explain how to add classifications in QuickBooks to generate detailed P&L reports and automate the process using Synder software. Let’s get started!
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1. Introduction: Automatic Class Tracking in QuickBooks Online
2. How to Create New Classifications in QuickBooks Online
3. How to Automatically Apply Classifications to Sales with Synder’s Categorization Rules
4. Reviewing Results in QuickBooks
Introduction: Automatic Class Tracking in QuickBooks Online
Imagine you sell different types of products online, such as earrings, rings, and necklaces. Instead of just knowing the total sales amount, it would be beneficial to understand the performance of each product group. This information helps you identify areas of improvement and allocate resources accordingly. Additionally, you want your P&L report in QuickBooks to be clear, easy to read, and automate manual tasks.
The easiest way to achieve this is by classifying your products in QuickBooks automatically using smart software. We recommend utilizing class tracking in QuickBooks, which can be seamlessly integrated with Synder to automate the process for sales from various channels and payment platforms.
Currently, your QuickBooks P&L report may only show a “Total Sales” account without any classifications, making it difficult to analyze the performance of different product groups.
To overcome this limitation, we will create three classes for product types in QuickBooks: Earrings, Rings, and Necklaces. These classifications will be automatically applied to sales synced from sales channels and payment platforms to QuickBooks using Synder software. Let’s see Synder in action!
Create your own categorization rules with Synder by signing up for a free account.
How to Create New Classifications in QuickBooks Online
In this section, we will explain how to add a new classification in QuickBooks Online with the assistance of Synder.
Note: Classifications are available in QuickBooks Online starting from the “Plus” subscription level.
Before you can use the class tracking feature and automatically apply classifications to sales with Synder, you need to enable this feature in QuickBooks Online and create the necessary classifications.
Note: If you have already enabled and created classifications, you can skip this section.
Follow these steps to enable class tracking in QuickBooks Online:
- Go to Settings → Account and Settings;
- Click on the Advanced section → “Track classes” → Enable the option;
- Choose how you want to assign classes: “One to entire transaction” or “One to each row in transaction”;
- Save your settings and click “Done”.
Now, let’s create the necessary classifications in QuickBooks Online:
- Click on the Settings in the top right corner → Select “All Lists”;
- Choose “Classes”;
- Click on “New” → Provide a name for the classification → Save the entry;
- Repeat step 2 for any additional classifications required for your business;
Congratulations! You have successfully added classifications in QuickBooks!
How to Automatically Apply Classifications to Sales with Synder’s Categorization Rules
Synder software automates the synchronization of sales and expenses, along with all the necessary details, directly into QuickBooks. All you need is to connect QuickBooks with your sales channels and payment platforms using Synder.
Now, let’s create a categorization rule to automatically apply the classifications created in the previous section to the sales synced into QuickBooks. This categorization rule will streamline the process and provide a more informative P&L report. The rule is based on simple “if-then” conditions.
To set up your custom categorization conditions, sign up for a free Synder account (no credit card required) or contact our specialists to schedule a demo session.
Follow these steps in Synder:
- Visit the “Categorization Rules” tab in Synder’s left menu → Click “Create Rule”.
- Add a trigger for the rule: “Sales Receipt → Created”. This means that whenever Synder creates a sales receipt in QuickBooks, the rule will be activated.
- Add the condition to differentiate between sales receipts: “If Line: Product or Service → Name → Contains → earring”. This condition instructs Synder to check if it is met and apply the rule accordingly.
- Add two additional conditions: “If No: If Line: Product or Service → Name → Contains → ring”; “If No: If Line: Product or Service → Name → Contains → Necklace”.
- Choose the action for each condition: “QuickBooks action → Sales Receipt → Update current”. This action informs Synder to update the specific expense that triggered the rule.
- You will be provided with a sales receipt template where you can assign the appropriate class from QuickBooks to each product group. In our case, these classes are “Earrings,” “Rings,” and “Necklaces”.
- Save the rule.
Note: You can use different conditions that suit your business flow, such as amount or description.
Congratulations! Going forward, whenever you sync new transactions into QuickBooks, the respective classes will be applied automatically based on your conditions.
NB: If you wish to apply changes to previously synced transactions, you will need to revert those transactions in QuickBooks and sync them again with the new categorization rule. We recommend testing this process with a small number of transactions first to ensure everything proceeds as expected before applying the changes to all transactions in QuickBooks.
Reviewing Results in QuickBooks
Great job! You can now view your P&L report in QuickBooks Online, which includes sales divided into three classes based on the product types: “Earrings,” “Rings,” and “Necklaces”. With this information, you can easily identify the performance of each product group. For example, “Earrings” are doing well, while “Necklaces” may require additional attention. Additionally, your P&L report is now well-organized and easy to understand.
Don’t settle for a P&L report in QuickBooks that merely displays the total sales figures for a given period without providing meaningful insights. Your report can be clear, accurate, easy to read, and provide details about the products sold, their performance, and areas for improvement.
By adding classifications to your sales, you gain a comprehensive overview of your product groups and their performance. With Synder’s smart automation of classification implementation, you have more time to focus on your business performance and enhance your strategies for extraordinary results.
Try Synder today and eliminate manual work!