Final answer:
Location tracking in QuickBooks Online is a feature that allows businesses to track income and expenses by different locations or business divisions. This aids in customized financial reporting and decision-making for businesses that operate across multiple locations.
Step-by-step explanation:
Location tracking in QuickBooks Online allows businesses to track their income and expenses according to different locations, which could be physical places or separate divisions within a company. This feature is particularly useful for businesses operating on multiple sites or those that need detailed financial reporting by location.
For instance, if you own a restaurant chain, location tracking can provide individual financial statements for each restaurant, making it easier to assess which ones are profitable and which are not.
It's important to note that the level of QuickBooks Online subscription may affect the availability and functionality of location tracking. Moreover, this feature must be turned on in the account settings to utilize it for financial reporting and tracking purposes.
Once enabled, users can assign transactions to specific locations, which then allows for customized reporting based on these distinct segments of the business. It streamlines management reporting and better informs business decisions.