Class Tracking

Class tracking is an accounting method that enables nonprofits to categorize and monitor financial transactions according to functional areas, such as programs, administrative functions, or fundraising activities. By assigning classes to expenses and income, organizations gain detailed insight into how funds are allocated and utilized across specific areas of operation. This process helps ensure accountability, transparency, and compliance with donor restrictions or grant requirements. Class tracking is especially valuable for nonprofits that need to report on the effectiveness of different programs and meet the requirements of funders, auditors, and regulatory agencies. It also supports informed decision-making by providing granular financial data for each functional area.