Yes, you can assign a class to a checking account in QuickBooks Online
QuickBooks Online lets you tag your checking account with a class, which is a way to organize and sort your transactions by department, location, project, or any other category that matters to your business. When you assign a class to a checking account, every transaction that flows through that account automatically carries that class tag — unless you override it for a specific transaction.
This is useful if you have separate checking accounts for different parts of your business and want your reports to automatically separate the money by that division. For example, if you have one checking account for your main office and another for a satellite location, assigning a class to each account means your profit-and-loss report can show revenue and expenses broken down by location without extra work.
Key Takeaways
- You assign a class to a checking account by editing the account details in the Chart of Accounts, not during the account creation process.
- The class you assign becomes the default for that account, but you can override it on individual transactions if needed.
- Classes must already exist in your QuickBooks file before you can assign one to an account — you cannot create a new class while editing the account.
- Assigning a class to a checking account affects all future transactions; it does not retroactively change the class on transactions already recorded.
Where to find and assign the class field
Open your Chart of Accounts by clicking the Accounting tab on the left sidebar, then select Chart of Accounts. Find the checking account you want to modify and click the three dots on the right side of that row, then select Edit.
Scroll down in the account details window until you see the Class field. It appears as a dropdown menu. Click it and choose the class you want to assign. If you do not see a class option, it means you have not yet created any classes in your QuickBooks file — you will need to set those up first in the Classes section of your settings.
After you select a class, click Save and Close. The class is now the default for that account.
What happens when you assign a class to a checking account
Once a class is assigned, every deposit, check, and transfer you record using that checking account will automatically show that class in the transaction details. When you run reports — like a Profit and Loss statement or a Balance Sheet — QuickBooks can break down the numbers by class, so you see how much money moved through each class category.
The class assignment does not lock you in. If a specific transaction should belong to a different class, you can change it on that transaction alone. The account's default class stays the same, and the next transaction will use the default again.
Keep in mind that assigning a class to an account only affects transactions recorded after the assignment. Any transactions already in the account will keep whatever class (or no class) they had before.
When you might want to assign a class to a checking account
Assigning a class to a checking account makes the most sense when you have separate accounts for separate parts of your business. If you have a checking account that only handles money for one location, department, or project, assigning a class saves you from having to manually tag every single transaction.
It is less useful if you use one checking account for mixed purposes — in that case, you would need to assign the class on each transaction anyway, so the account-level default does not help much.
Some businesses use classes to track profit centers, cost centers, or revenue streams. Others use them to separate by geography or by client. The structure depends on how you want to see your financial picture broken down in reports.
How to remove or change a class assignment
Go back to the Chart of Accounts, find the account, click the three dots, and select Edit. In the Class field, click the dropdown and select the blank option at the top (usually labeled as "—" or "None"). Click Save and Close. The account no longer has a default class.
To change the class to a different one, follow the same steps but choose a different class from the dropdown instead of clearing it.
Classes versus other ways to organize accounts
QuickBooks also lets you organize accounts by account type (checking, savings, credit card, and so on) and by account subtype (like "Cash on Hand" or "Money Market"). Classes are different — they are a flexible tagging system that cuts across account types.
You might have multiple checking accounts with the same class (if you have two locations but want to track them together for some reason), or one checking account with no class (if it is a general account). Classes are a reporting tool, not a structural requirement. You can run your business without using classes at all, or you can use them heavily — it depends on how detailed you want your financial breakdown to be.
Frequently Asked Questions
Do I have to create classes before I can assign one to a checking account?
Yes. Classes must exist in your QuickBooks file before you can assign one to an account. You create classes in the Settings menu under Classes. Once you have created at least one class, it will appear in the dropdown when you edit a checking account.
What if I assign a class to a checking account and then delete that class?
QuickBooks will not let you delete a class that is in use. You must first remove the class from any accounts or transactions that use it. After you remove it from the checking account, you can then delete the class itself.
Can I assign different classes to different transactions in the same checking account?
Yes. The class you assign to the account is just the default. When you record a transaction, you can change the class on that specific transaction to something else. The account's default class does not change — it applies to the next transaction you record.
Will assigning a class to a checking account change the class on old transactions?
No. Assigning a class to an account only affects transactions recorded after the assignment. Transactions that were already in the account keep their original class (or no class, if they did not have one).
Can I use classes to separate my personal and business checking accounts?
Classes are not the right tool for that. If you have a personal account and a business account, they should be separate accounts in your Chart of Accounts with different account names. Classes are for dividing up your business accounts by department, location, or project.