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adowds
April 9, 2019
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Setting up a nonprofit

  • April 9, 2019
  • 1 reply
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My nonprofit client wants to use QuickBooks to track four levels of revenue and expense: 

 

> Category - restricted vs. unrestricted (e.g., this is a GAAP requirement; grant revenue typically comes with expense restrictions; operating revenue typically doesn't)

> Source - by specific source of funds (e.g., by specific grant) vs. fundraising project (e.g., brownie sales)

> State - where applicable, the nonprofit wants to monitor profitability by fundraising event (e.g., how much revenue came from an event held in a particular state vs. the costs of hosting the event)

> Service - where applicable, the nonprofit wants to monitor profitability by type of service provided (e.g., they offer various levels of educational training: pre-K; K; G1)

 

Is this level of tracking/reporting possible using a combination of QuickBooks (nonprofit?) software's Customers, Jobs, Parent accounts, Classes, etc. features?

 

Ideally, the nonprofit wants to print/download their aggregate income statement by one or more of those four levels: category, source, state and service.

 

Thank you, Allan Dowds

 

Best answer by Angelyn_T

Hello there, @adowds.

 

I'd be glad to help you today so you'll be able to use QuickBooks to track the four levels of revenue and expense.

 

If you're using QuickBooks Online (QBO), and run a non-profit organization, you may need to edit your QBO account to better fit your needs. You can make necessary changes to ensure your account uses terms commonly used by non-profit organizations.

 

For additional guidance, you may check it here: Configure an account for a non-profit organization.

 

On the other hand, to use QuickBooks to track the four levels of revenue and expense, for the Category, you must set up accounts in the Chart of Accounts following the GAAP requirement or the correct category.

 

To track Sources, you must turn on class and location tracking feature in QuickBooks.

 

For the State, you can create the state as the name of the customer and create a project under that specific state.

 

Lastly, for the Service, you can turn on, create and use the products and services list.

 

You can always run reports in QBO and make the necessary customization to track and check your revenue and expense.

 

To learn more about non-profit accounting basics, you may check this article: How to Customize QuickBooks for Your Needs.

 

Please feel free to add a post/comment below if you have any other QuickBooks questions, I'll be always here to help you. Have a great day ahead!

1 reply

Angelyn_T
Angelyn_TAnswer
April 9, 2019

Hello there, @adowds.

 

I'd be glad to help you today so you'll be able to use QuickBooks to track the four levels of revenue and expense.

 

If you're using QuickBooks Online (QBO), and run a non-profit organization, you may need to edit your QBO account to better fit your needs. You can make necessary changes to ensure your account uses terms commonly used by non-profit organizations.

 

For additional guidance, you may check it here: Configure an account for a non-profit organization.

 

On the other hand, to use QuickBooks to track the four levels of revenue and expense, for the Category, you must set up accounts in the Chart of Accounts following the GAAP requirement or the correct category.

 

To track Sources, you must turn on class and location tracking feature in QuickBooks.

 

For the State, you can create the state as the name of the customer and create a project under that specific state.

 

Lastly, for the Service, you can turn on, create and use the products and services list.

 

You can always run reports in QBO and make the necessary customization to track and check your revenue and expense.

 

To learn more about non-profit accounting basics, you may check this article: How to Customize QuickBooks for Your Needs.

 

Please feel free to add a post/comment below if you have any other QuickBooks questions, I'll be always here to help you. Have a great day ahead!

    A
    adowdsAuthor
    April 9, 2019

    Thank you so much Angelyn! That's really helpful! I sent you an email outlining my understanding of the actual mechanics to capture the four levels of detail. Please review and respond when you have a moment.

     

    Very appreciatively, Allan

    A
    AldrinS
    April 9, 2019

    Hey there, Allan.

     

    I'm happy to know that you're set on the right path thanks to my colleague Angelyn_T.

     

    On her behalf, I'd love to provide the clarification you're looking for. However, we're unable to receive and view the email that you sent. If possible, I'd recommend that you post your reply here in the Community. Doing so will help to ensure that I provide the right answer to you in a timely manner.

     

    Please feel free to post any other questions you have below, I'm here to ensure your success. Thanks for coming to the Community, I'll keep an eye out for your response.

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