In this presentation we will discuss options for filtering reports by class so we can better represent reports and what kind of changes we could put into place in order to filter our reports by class and better within QuickBooks. We are on the homepage we currently have the open windows open. In order to open the open windows, you want to go to the View drop down and select the open windows list. We're going to take a look at our reports. First, we want to take a look at the profit and loss by class by going to the reports drop down selecting the company and financial we're looking for that the profit and loss by class, profit and loss by class we're going to change the dates from Oh 10119 to 1230 119. That's January 1 to December 31.

In the year we're working on that being 2019. Note we've done some adjustments here to format this report to look a little bit nicer. However, we may want to report this and MCA is impossible for me to just report this by just having one class. So that so we don't have these two different classes. And we can kind of see an income statement as we would similar to just a normal income statement by using this type of report. The other option is to actually run the income statement, let's just take a look at the normal income statement reports.

Profit and Loss profit loss standard. And if we were to see this as of Oh 10119 1230 119, that's January through December 2019. If we if we didn't have the classes, we could just basically run this report and this would be our income statement. The problem is that we have these items down below and the other expenses we've now grouped down there, and that's nice that they're down there and other expenses, but maybe we might say, Hey, is there is there a way I can format customize a report that would just be an income statement and not have these classes are formatted a little bit differently so I can get down to net income without having it be muddied up by These classes or going to the profit loss, not having these multiple columns. Okay, so we can customize these reports, we can go to the customized reports up top, and we can filter by going to the second tab and filtering.

And then we could try to filter by class. Let's say I want to filter by class, meaning I want to remove one of the classes and just have one class. Problem is it doesn't let us filter unclassified, because QuickBooks doesn't see that as a class. And we've kept the unclassified ones as basically our our major class or default, is unclassified. So we could, we could then go here and go to two tax deductions to see that item, and then go Okay, and that'll give us our classes by tax deduction class, and the total. And that's going to be good for reporting, tax reporting.

We could also double click on it and get the reports here. But we might want then one that was going to report by class by the business class. And that's difficult to do considering they're all in unclassified. So to do that we could assign a class to them. So that everything, then would have a class one would be the normal business, the other would be the tax deduction for the personal and then be able to sort by class. So if we want to assign a class to the normal business so that every transaction basically has a class, then we would go up to the Customize reports to your on classes down here, like I wasn't on classes, and then remove the selected filters.

And that should take us back to where we were before and then say, Okay, now our task here is to take everything out of unclassified, we, we don't want anything unclassified, because we can't filter by it. So we could go to all these transactions and we have to basically, you know, change the transactions in them. It's a tedious process, but it's not difficult to do so every transaction that we have We could just, for example, go to the income accounts up top, double click on it and go to each of these transactions. Again, it would be very difficult for an entire year. But you can do this not too much difficulty for if we're just starting for the new year if you're starting this out for a new time period. So then you'd go into each one of these transactions and change the class field.

And we're going to I'm going to add a new class now as we go, and I'm just going to call it business. So this is business as opposed to the personal personal deductions. And I'll say tab, it's going to say do you want to set that up? We're gonna say yes, quick, add that. And there we have it. Now be careful not to add more than one, you know, classes we don't want.

So we're gonna say Save and Close, and save changes. And then if I close this back out, we see now I said yes, and refresh the report. Now we have the business. We've got the tax, tax deduction and the unclassified. What we really want to do now is to go to every of these transactions and make that adjustment go to everyone, double click on this, change this to business. And then Okay, and save and close.

Yes. And again. So you can see how tedious this task is. But it's not too difficult to do, I'll just do a few more. And then I won't go through this whole process, but just notice fairly easy, I'm just double clicking Add in business and type in B. Save and Close.

I'll do a few more just to show you how fast you can kind of be even though it is a tedious process, and then save and close as we go. So we'll do that. And then I'm going to close this back out. And then you want to do this for all of all of everything unclassified should be over here in business. So we'd go into any of these expenses and do the same thing. There's less activity here, of course, double click on these class.

So most of the sessions tenses will be checks that will look like this, they'll all have a class field. So it won't be a problem. whatever type of transaction, I'm just going through these, as I talk here, every type of transaction will mainly be on the income statement, revenue will be deposits, or there'll be. Now of course, this one is zero, so we don't want to take because it's already classified over, over in the business. So we already did that one, and then depreciation, so most of these types of things will be checked. Now this one's a journal entry.

So notice a journal entry, but it still has the class field. So I'll just put them both to business. So pretty much every type of transaction will have a class field that we can go to and most of them now that we're in expenses, of course, will be these checks. And so they'll all look the same as I go through here. They all look much the same. This one's a journal entry, which we're probably not going to see my You can't see it on this.

And again, you're probably not going to be entering too many journal entries. But if you see a journal entry like this, just double click on the journal entry. And then again, class field, we're just changing all the classes. So then we could say Save and Close. This, the other way you can do it is if you're on this journal entry, you can use the splits field just like we did in the end the register. So notice, no matter what type of transaction, the point is, we should be able to double click on it and see a class field and be able to enter those classes as we go.

I'll just do a couple more. And then I'll populate the rest of this and we can see the end result of it. So these are just normal normal types of checks. We'll just add the class field. And I'll just keep on continuing with this one and then we'll take a look at the end result. So we've now done it for the entire data sets, Excel For one item, and I just want to show that note that what we want to do is get to this unclassified area should disappear.

So we should have a class for every area under this method, and that will make this item disappear. So then we're just going to go to this last one, this last one, after changing the class, this unclassified should go away. So I'm going to double click on this, double click on this item, and then make this a business class business and save and close, and close this back out. So here's our end result then, so now we have business, we have tax deduction on the personal, and then we have the total. And once we're in this classes area, then we could sort this report in a lot of different ways. We can sort it by just the tax deduction for the personal and or the business for the personal just takes a little bit more work that I'm going to go back if I go to the business account, the bank account and go to the US register banking us register and go to the checking account.

You'll recall every time we enter data, if we if we didn't have the default was to go to unclassified. So under this method, all of our accounts would have to be going to some class, usually business. And again, if we mess up, that's okay, because we can go in at the end of the year, or whenever we want to this class is going back to the profit loss by class. And we could reassign that what we need to do as we go into here, and then we could sort this profit and loss by classes. And we could go to the Customize reports, we can use the filters options, and we can filter by class. And we can then take a look at the classes on these filter options.

And so just the business. And if we do that, we say okay, and then here's just the business and the total items. So that'll give us just the business numbers. Now, it's important to note that you want to see the totals, win win for all classes. If you're trying tie this out, make sure you have everything done correctly, because you want to make sure everything is recorded somewhere. And then that ties out to kind of like the balance sheet because the total is going to be what ties out to the balance sheet.

So let's go back to customize, and go to filters, go to classes. And if you then sort of course, by the other class we already saw, then we could remove this filter and say, okay, and it's really it's, again, it's, it's useful to know this report, because this is the amount that's actually going to be used kind of when it rolls into the balance sheet into the equity section of the balance sheet, you kind of have to be aware of that. Also note that the profit and loss can be adjusted in a similar format, but you want to just be careful when you do it. So that so you have you want to always go to this report. So we can see that we have the classes properly allocated. Otherwise we could miss something in the profit and loss.

So let me show you what I'm talking about. If we go to the reports up top and we go to company In financial and the profit and loss report, then we change the date range from a 10119 to 1230 119, you may have this open already, so January through December 2019, same information, we have this item down here, we may not want to show that item, all this personal stuff on the profit loss. And we can now use the filters to remove that even though we don't have the class columns, which is nice and show just basically a normal profit and loss. So to do that, we're going to go to the Customize reports up top and go to filters. And then we want to go to classes again. And we want to filter by the business now the business items, and then say OK, and now you'll see that it removed all the non business items and we have net income showing as business income.

You want to be careful to do this However, because if you have things that are classified improperly, then You're not going to show you know, if you have unclassified business items, for example, then it's not going to show those items. So you want to make sure to go to the profit loss by class, make sure that you don't have any unclassified items. And then you can run this report and it'll look, it'll look pretty nice. Also note that if you go to reports up top, and go to the company and financial and the balance sheet, and if we were to run that, as of 1230 119, just be aware that this net income number 19, for 28 is going to refer to if we go back to the profit and loss doesn't match this 15 910. Why because of the filter. So if we if we customize the report, and we go to the filters, and we remove, go to classes and remove that filter, and say okay, then now we've got this added information, the 19 for 25.

That's what's going to be on the balance sheet. If I go to Balance Sheet. There's the 19 for 25. So just be aware of that, if it's a sole proprietor, it's not going to be a big issue because it should all roll into eventually, it'll roll into the owner's equity account here as draws should as well. So it shouldn't be an issue because it's all going to be in owner's equity. But just be aware that how it rolls over into into this number, just be aware that the relationship between the income statement and the balance sheet, it's going to be total net income that's going to roll into this item here.

And just also just note, like if we went back to the profit loss, these items are really kind of draws. What that's what these these are really personal items that we could have reported on the equity when they go into the equity section. We think of them as affecting equity but draws rather than rolling into like a retained earnings type account. But if it's a sole proprietor, it's all going to be equity. Anyways, in other words, this net income is going to roll into equity. This is gonna roll into equity.

And then if we go to the balance sheet, you'll note you have this net income number, which isn't really even proper on the balance sheet. That's just what QuickBooks does to try to try to show us that connection. But, and then it's eventually going to go if I went into the next year, for example, if I change the date up here to 2020 there, then that 19 goes away, and it rolls into the equity account, because it's all just equity if it's a sole proprietor, so so it all kind of washes out. Now this draws account QuickBooks doesn't close that close that out, and we might think of it more properly as draws. But normally under financial accounting, we would close it out, we only see the draws account for a certain time period and then we would close it out to the equity account. So so just be aware of that it's all going to close out to equity and it should be okay and wash out in a sole proprietor type of setup to the to the equity account at the end of the day.

So you can run this profit loss and make it look nice and professional, just make sure that you first run the profit loss by class to make sure you don't have any unclassified items, and that these two are properly classified. Also note that as we switched up those classes if there's any item in that, for example, but the nice thing about this method is you could go into some of these items and say that there's some that are business and some that is personal possibly, and, and be able to, to break out between the business and personal if there's anything. For example, if some of these medical expenses that are Whatever happened to be business expenses, you could put part of them in the business area, and part in the personal area under that under that format. So just be aware. That's another kind of nice little format of the classes method.