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Sheila221
March 14, 2023
Question

Nonprofit accounting setup

  • March 14, 2023
  • 1 reply
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Started work with Nonprofit (NP)  whose QB was setup for fund accounting. However, class tracking and proper funds not used. The NP in existence for 3 years. Can I start now, after 3 years, to use class tracking with fund accounting.? There should be 3 funds (Operating, Mission and Building). How to I change the chart of accounts to now reflect class/fund accounting? How will historical be impacted? I think we should use multiple subaccounts but not sure best way to re-set all of this to properly reflect fund accounting. Help!

1 reply

Rustler
Rustler
March 14, 2023

It looks like you have fund accounting set up, the operating, mission and building accounts indicate mission and building funds. Typically everything is done in the operating account. Deposits are made to the operating account and then if necessary transferred to the fund account. Expenses work just the opposite, transfer the amount out of the fund account and into the operating account, then pay the expense from the operating account.

 

Classes are transactional, classes do not get assigned to an account. When you report on a class it searches the transactions and any account that was posted to is reported.

 

If you create a class now and want it to also tag historical transactions, then you will have to go back in history and edit each transaction assigning a class to it. Basically no class assigned means it will not be reported in class reporting.

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