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QB for Non-Profit

Forum|Forum|8 years ago
October 23, 2017
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I'm setting up QB for a small fire district. Does anyone have a chart of accounts template they would be willing to share? Or advice on how to set it up? I have a chart for each fund (only three) need to know how to input those numbers.. I'm new to QB Non-Profit.

Thank you !!!

Best answer by john-pero

The only difference (in my book) between using QB for a non-profit as opposed to a for-profit is __________________ (fill in blank with blank) You still have income and expenses. You still have (hopefully) a year end positive income over expenses, which in your situation is not taxed. It may or may not have to be distributed (spent to zero) which will depend on your charter and your state law. I cannot imagine a case where a state would say to a fire company "spend every last dollar you take in and when you need to pay the lights or fuel the tricks we've got your back"

Your COA (chart of accounts) will consist of the income, expenses, AND assets you will record on the books. Even though you pay no taxes you are still required to capitalize and depreciate large purchases over time just like a for-profit entity. Look at the accounts you have used in the past on any forms you have filed or your annual financial report to the board.

A sampling of expense>

utilities, phones, 2-way radios, oxygen, fuel, water(unless your municipality donates the water) foam, small tools, mortgage interest on buildings, interest on capital purchases

john-peroAnswer

The only difference (in my book) between using QB for a non-profit as opposed to a for-profit is __________________ (fill in blank with blank) You still have income and expenses. You still have (hopefully) a year end positive income over expenses, which in your situation is not taxed. It may or may not have to be distributed (spent to zero) which will depend on your charter and your state law. I cannot imagine a case where a state would say to a fire company "spend every last dollar you take in and when you need to pay the lights or fuel the tricks we've got your back"

Your COA (chart of accounts) will consist of the income, expenses, AND assets you will record on the books. Even though you pay no taxes you are still required to capitalize and depreciate large purchases over time just like a for-profit entity. Look at the accounts you have used in the past on any forms you have filed or your annual financial report to the board.

A sampling of expense>

utilities, phones, 2-way radios, oxygen, fuel, water(unless your municipality donates the water) foam, small tools, mortgage interest on buildings, interest on capital purchases

P

phsphinxllc

Is there a quickbooks module for non-profits?

R

ReymondO

Yes, we have a couple of articles that will help you with your Non-profit concerns in QuickBooks, @phsphinxllc.

Here is a list of articles that you can use:

In case you need help in performing other tasks in QBO, you can check our articles here. Make sure that the topic is set as "QuickBooks Online."

That's it! Please let me know if there's anything else I can do to be of assistance. Wishing you and your business continued success in all that you do.

QBSuperGenius

I work with a number of Fire Districts. I have a basic Chart of Accounts which I use with one of them that I can share. Keep in mind that it is also important to use classes. The minimum classes any nonprofit should have is Program, General & Administrative, and Fundraising (the same columns that are on page 10 of the 990).

Hope this helps!

-Dawn

Nonprofit SuperGenius

S

SMLAuthor

HI,

Thanks for answereing. If you would send me a copy of the Chart of accounts that would be wonderful! Is it possible to uplaod that into QB? The fire District this is for has a general fund, Land and Facilities Fund and a Vehical Fund. The last two are used only for the purpose of allocating money each year for future purposes. The expenses are paid thru the general fund. I'm just looking for a base COA to work with. I have never used QB for non-profits before.

Thanks for your help, it realyy appreciated!

QBSuperGenius

Please check my profile so that you can email me directly (and then I will have your email address).

Yes - the Chart of Accounts can be uploaded directly to QBO.

-Dawn Brown

qbteachmt

"Does anyone have a chart of accounts template they would be willing to share?"

Your County and/or State has the requirements.

I teach QB and support lots of local governmental entities, and get referrals from the State local government services bureau, for town clerks, water, sewer, fire, schools, etc. I have a county water district under contract, for about 9 years now. Additionally, I set up a file for OK and MA systems. You need to Find those references and start with them. You track what you need to report as part of your Annual reporting.

"I have a chart for each fund (only three)"

You don't need to create multiple accounts for each fund. That is what Class Tracking is for.

I recommend the book Running QB in NonProfits, by Kathy Ivens.

"Your COA (chart of accounts) will consist of the income, expenses, AND assets you will record on the books."

Not necessarily; governmental accounting handles things like Asset and Liabilities differently, in QB. What you report and how you report it is Different. Example: Debt Service is Expense for a Town, but Reduces Liability for the Sewer/Water system.

AudreyPratt

Hi @SML!

Here is a great presentation from QuickBooks Connect 2017 all about non-profits. Enjoy!

A Guide to Attracting and Serving Non-Profit and Government Clients - Jeff Wilson II - San Jose 2017

qbteachmt

Special Purpose Districts are not the same as a Not For Profit; they are Governmental Units, with taxing authority. That is the Most Siginifcant difference that should help you understand why they are Different.

My State provides a Chart of Accounts reference which must be used:

http://sfsd.mt.gov/LGSB/Accounting-AFR-Resources/01_BARSChartofAccount

My State provides financial reporting documents which must be used:

http://sfsd.mt.gov/AgencyAccountingResources

My State offers Training materials online and at their work sessions, including "Clerk School:"

http://sfsd.mt.gov/documentationtraining

My State has this portal:

http://sfsd.mt.gov/LGSB

You will want to connect with your County or State, as well, when you run the financials for this type of organization.

This is not the same as Not For Profit.

QBSuperGenius

But this is not the case for all FD's. In my state (AZ), FD's are NFP's and not governmental units.

qbteachmt

"In my state (AZ), FD's are NFP's and not governmental units."

I would be surprised that this is a Private Charity. All you have to do is google:

arizona fire district accounting

to find answers, such as:

http://www.azfiredistricts.org/wp-content/uploads/2014/03/AFDA-Financial-Procedures-3.pdf

and:

"48-805 - Fire district; powers and duties; definition"

https://www.azleg.gov/ars/48/00805.htm

You seem to be a Special Purpose District.

In any case, your best reference is the Tax form your entity files, such as 990. If you report to a higher authority, such as County or State, you follow their requirements. There is no Generic listing; there is your Requirements.

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