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SusanG97227
October 9, 2024
Question

Record Grant Funding

  • October 9, 2024
  • 1 reply
  • 0 views

I work for a non-profit organization that receives funds from multiple grants.  What's the best way to record dollars received and track how they're spent for report backs to the foundations?  I'm a new bookkeeper and am new to the non profit industry.

1 reply

L
LeizylM
October 9, 2024

Recording grant funding in QuickBooks Online (QBO) is a breeze, and I'm here to show you how Susan.

 

When you receive grant funds, we can create a Deposit in QBO. Ensure that the appropriate income account is selected for that specific grant.

 

Here's how:

 

  1. Go to the + New button.
  2. Select Bank deposit.
  3. In the Account drop-down, choose which bank you'll deposit the grant funds.
  4. Enter the  grant's information (i.e., Received From, Account, and Amount) in the Add funds to this deposit section.
  5. Click Save and Close or Save and New.

 

To keep track of how grant funds are spent for reporting to the foundation, you can create separate expense accounts for each grant. Once categorized under their respective grant accounts, we can generate detailed reports for the foundations upon request.


As a new bookkeeper in the non-profit industry, it may be helpful to consult with a professional accountant or a non-profit consultant to ensure the accuracy of your books.

 

You can learn more about recording bank deposits in QBO by checking out this article: Record and make bank deposits in QuickBooks Online.

 

Once you categorize your grant as income, it will be reflected in the Income section of your Profit and Loss report.

 

Consider me your ongoing support if you need further help in recording grants in QBO. Assistance is just a post away.

S
SusanG97227Author
October 14, 2024

Thank you for your response.  Should I book a receivable when we first get the grant letter notification before we receive the funds?  How do I book the receivable and then book the cash receipt to move it?

 

thanks,

Susan

C
CarlSJ
October 14, 2024

Let me provide additional details about recording grant funding in QuickBooks Online (QBO), @SusanG97227.

 

Booking receivables depends on whether you choose to record it first or when you receive the cash. For accurate financial data, it's best to consult an accountant.

 

Meanwhile, if you choose to book the receivable first when you get the grant letter notification, I've got the detailed steps below.

 

To begin with, let's set up donors as customers first:

 

  1. Go to the Sales tab and select Customers.
  2. Click the New Customer button.
  3. Enter the necessary details needed, then click Save.

 

Second, let's set up an item for the grant with the appropriate category so you can track the grant with the Income Account:

 

  1. Go to the Settings icon and select Products and Services.
  2. Click the New button and choose Product/Service Information.
  3. Select the appropriate category in the Income Account dropdown.
  4. Once done, click Save and Close.

 

Third, let's create an invoice for the grant using the item we created to book the receivable:

 

  1. Click the + New button and select Invoice.
  2. Select the customer we set up and use the item we created.
  3. Click Review and Send.

 

Once grant funds are received, let's record them to mark them as paid within QBO.

 

Lastly, create a bank deposit to move the funds from Undeposited Funds to the correct bank account.

 

On the other hand, you can consider these two options for tracking expenses and providing reports to the foundation:

 

  • Use the class tracking feature and set up a class for the grant, then add the class to all grant-related expense
  • Use the project feature by setting up a specific project for the grant and assigning it to your expenses

 

For future reference, you can utilize this article to save the current customization settings of your desired report to use in the future: Memorize a report.

 

I'm here to help you with any additional assistance you may need in recording grant funding in QBO. Have a productive day.

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