accounting for not for profit entities

Hi there, @Damitha SLYCAN. I'd be glad to help you set up your account to fit your organization's needs.

In QuickBooks Online (QBO), you can configure your account to ensure it uses terms, reports, and forms used in nonprofit organizations. 

Here's how to change your company type:

1. Go to the Gear icon and select Account and Settings.
2. Select the Advanced tab.
3. In Company type, select Edit.
4. Select the Tax form dropdown, then choose Nonprofit organization.
5. Select Save, then Done.

Once done, sign out and sign back in to see the changes reflected throughout QuickBooks. "Invoice" should now say "Pledge."

Then, you can rename customers as donors by following these steps:

1. Go to the Gear icon and select Account and Settings.
2. Select the Advanced tab.
3. Click Edit in Other preferences.
4. Select the Customer label dropdown, then choose Donors.
5. Select Save, then Done.

Furthermore, QBO automatically sets up accounts in the Chart of Accounts based on your business entity. You can tailor it to fit your business by adding additional accounts. If you need further guidance in organizing them, it would be best to ask for professional advice from your accountant about this. This ensures your financial reporting is accurate.

I'm also linking these great articles you can read and learn about tracking donations:

• Recording in-kind donations received
• Track funds you receive from donor

Feel free to swing by anytime you need help with recording donations in QBO. The Community is always here to help.