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Lou_E
January 17, 2019

QB for Non-Profit (church): transition use of bank sub accounts to track funds to use of Equity accounts

  • January 17, 2019
  • 1 reply
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As a recent treasurer,using QB desktop Premier for Non Profits,  I f ind our cash and fund accounting has been adequately managed through using bank sub accounts identified as temporarily restricted and non restricted.  A new accountant has directed the use of equity accounts to replace thie bank sub accounts and I am trying to determine how to best track transactions through our system when QB registers are primarily bank registers.

    1 reply

    qbteachmt
    qbteachmt
    January 17, 2019

    Premier provides for Balance Sheet by Class; that's why you didn't need to micromanage by Subaccounts, or more Rows in the financial reporting. That's why you don't use Pro, which doesn't handle Bal Sheet by Class and requires micro-management by subaccounts.

     

    What the accountant describes does not Replace Banking by Class. They are describing Rebalancing Equity, which is in addition to managing Bank. This is covered in the book Running QB for Not For Profits, by Kathy Ivens.

     

    You don't necessarily need to Rebalance Equity for everything, if you are properly using Bal Sheet by Class. If you intend to micro-manage Rows, you don't necessarily have the segregation required. That is likely why they made the suggestion to add Duplicate Data handling.

     

    I have an attached example of a file that was in Pro, and once we moved it to using Class and to Premier, you can see the redundant ZERO rows. We also simplified their banking and found lots of out of balance errors.

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      Lou_EAuthor
      January 18, 2019

      Thank you for your response.  It appears, then, that the accounts as I received were managed by several prior and correct establishment of class structure was attempted but not achieved resulting in a large COA and somewhat redundant classes.  

       

       

      I have been using the Kathy Ivens book, Running QuickBooks in Non-Profits as well as QuickBooks for Churches by Lisa London and can not seem to find the references to Rebalancing Equity or the accompanying managing bank management to which you refer.  I continue to search.

       

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