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PBI-INADS
February 6, 2024
Question

How to set up expense account for grant given by my company to another company?

  • February 6, 2024
  • 1 reply
  • 0 views

I work for a non-profit organization. We have been paying the expenses for another company that we worked with to get started. How should I create the expense account in the chart of accounts to correctly categorize these expenses paid? We are wanting to show it as "Grant" money.

1 reply

Nicole_N
Nicole_N
February 6, 2024

It's a pleasure to have you in the Community today, @PBI-INADS. I've got all the steps to help you set up an expense account in QuickBooks Online (QBO). 

 

To achieve this task, you'll want to go to the Transactions tab and select Chart of accounts (COA). Follow the steps below for the process:
 

  1. Access your QuickBooks Online company.
  2. On the left navigational bar, go to the Transactions tab.
  3. Select Chart of accounts and then click the New button.

  4. In the Account Type section, choose Expense and complete the necessary fields. 



  5. Once you're ready, click the Save and Close button.

 

Additionally, you can check these articles to learn more about how to manage accounts in your COA, categorize bank transactions, and reconcile an account inside QBO:

 

 

Never hesitate to ask if you have follow-up questions setting up an expense account. Just drop your comments below and I'll answer them for you.

P
PBI-INADSAuthor
February 14, 2024

Hi Nicole,

Thank you but I am unsure how to categorize the new expense account. After I select "Expenses" as the 'save account under' section, it then asks for the 'tax form section.' However, grant expenses is not one of the options and none of the ones available fit what I am looking for. I don't know which one to select under this section (see photo). I want to ensure I correctly categorize the expenses paid for the other company as "Grant Expenses." I have never had to set up this type of account before and after googling my question worded many ways, I cannot find the answer as most talk about categorizing grant expenses as the company itself has RECEIVED grant income but this is not the case for me. We are paying the other company's expenses with the grant money that WE HAVE GIVEN to them. Thank you for your assistance. 

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