Hello! What is the difference between a category and a class in Quickbooks?

Hi there,

Thanks for joining the QuickBooks Community. I'd be happy to assist you by answering any questions you have about QuickBooks. 

Classes allow you to track your income and expenses. Class tracking specifies a different class for each detail line of a transaction. Before you can set up and assign different classes to your employees, you'll need to turn on this feature in your QuickBooks Online Account. Please know that this feature is only available in QuickBooks Online Plus.

To turn on:

1. Click the Gear icon.
2. Select Account and Settings.
3. In the navigational bar, click Advanced.
4. Select Categories.
5. Check off Track classes to turn on class tracking.
6. Click Save and then Done.

Here's how to set up classes:

1. Click the Gear icon and All Lists.
2. Select Classes. ( You can also add locations by selecting Locations.)
3. Click the New button.
4. Add the name of the class or location and click Save.

To add class tracking to payroll:

1.     Click the Gear icon.
2.     Under Settings, select Payroll Settings.
3.     On the Setup Overview page, click on Accounting under Preferences.
4.     If prompted, Click Customize. If not, scroll down at the bottom of the screen to see the Classes section.
5.     Select the option that will best fit your preference for class tracking.                          

To learn more about class tracking, here's a recommended article: Get started with class tracking in QuickBooks Online.

Categories help you group your products and services to keep things organized. Here's a helpful article with more info about categories: Group your products and services into different categories.

In case you have other questions, feel free to contact our support team using this link here.