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R
Robyn26
June 23, 2021
Question

Projects in QBO

  • June 23, 2021
  • 1 reply
  • 0 views

I am a not for profit using the deferral method to account for funds received for contribution agreements.  The agreements have start and stop dates and usually span more than 1 fiscal year.  When received, the funds sit on the balance sheet until recognized as revenue against expenses.  Can I use projects to track the individual agreements?  I thought I read somewhere that you can not use balance sheet accounts.

1 reply

J
JamesM4
June 23, 2021

Hello Robyn26,

 

Thanks for connecting with us here. QuickBooks offers the Projects feature which is great for tracking agreements/jobs that have a start and end date. I'd be happy to share more info about using projects so you can start tracking the individual agreements with ease. 

 

Based on what you've described, I'd recommend using projects to achieve your QuickBooks goals. I'd encourage you to learn more about using projects by checking out this link: Set up and create projects in QuickBooks Online. The article explains how projects tie in together with your sales forms that directly affect your books. 

 

Let me know if you have additional questions after checking out the article. You're more than welcome to reach back to me in the comments below, I've got your back

R
Robyn26Author
June 23, 2021

Hi JamesM4,

 

Thank you for your quick reply.  I read the article and have a few more questions that maybe you can help me with.

1.) Can I tag a project to a balance sheet account?  For example, when we receive the funds, we debit cash and credit a deferred account.  Do I need a separate GL deferred account for each agreement or can I tag a project within the deferred account?

2.) Can journal entries be tagged to a project?  We have 2 departments and 1 department charges another department a fee, which will need to be tagged to a project. We usually just do a journal entry to recognize the fee.

 

Thank you

 

Robyn26

J
JamesM4
June 23, 2021

I see what you mean. Projects are primarily income-based and according to what you're looking for, I see you benefiting more using classes instead. Classes are great as they can both be income and expense-based. You can also tag classes to your journal entries which makes it easy for you to track the money movement. If you'd like to learn more about classes, check out this helpful article here. Otherwise, feel free to ask additional questions, I'm here to help. 

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