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While you may benefit from having transactions previously categorized and assigned within QBO, you might require the flexibility of only having ‘transactions in question’ tagged within your accounting software.
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Tags only need to be applied when needed, while the Classes feature comes built into every transaction on QuickBooks Online Plus and Advanced.This is how Tagging compares to Classes, in terms of flexibility and grouping functionality. Tagging comes with ample grouping functionality that may suffice to meet the needs of your business. Not only will it lighten the load when it comes to viewing and comparing like-kind transactions within your business, but it will also aid a smoother tax-filing process. The good news is that now the same functionality is available to help you get a better handle on your business finances. Search engines are able to easily sift through content relevant to a user’s search needs, thanks to functionality that works similarly to Tagging.

Grouping functionality has long existed in the digital world, as it allows for easy sorting through a lot of information. While tagging, available in all versions of QuickBooks Online, enables you to easily label and group together various transactions as a way of organizing your data. The functionality is available in QuickBooks Online Plus and Advanced and allows you to track account balances by department or location as well as breakdown other meaningful numbers within your business. Grouping Transactions Within QuickBooksĬlasses allow you to view income and expenses for different parts of your business, at a glance. In the past, your bookkeeper may have had various sections in which to log income and expenses for different categories of transactions, but thanks to the tagging and classes functionality from Quickbooks, this is no longer necessary. Just like this example, data within a business needs to be organized or grouped together if you are wanting to get a handle on your numbers or in the event of doing specific expense or income-related and financial comparative studies within your business. Searching for a specific book could take you hours if you manage to succeed at all. Imagine entering a library without genre-specific sections.
