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S
sgray98660-gmail
May 7, 2025
Question

What is the best way to setup grant tracking in QBO when the grant period will cross a fiscal year?

  • May 7, 2025
  • 1 reply
  • 0 views

Funds from the grant will only be received when we bill for work we've completed on the project. We will not receive any funds in advance. There won't be a "margin" or "profit" to track, so there are no estimates, however there will be a budget we must follow. The grant period crosses a fiscal year, so I'm wondering if it's better to set it up as a customer/project or a class code. Thanks for any information.

1 reply

M
MichaelaS
May 7, 2025

You can set up the grant using either customer/project and class code, Sgray. I'll elaborate on this further.

 

If you use the customer/project method, the first step is to set up an account to track funds and then associate it with a created service item, which will be used to produce an invoice for the project. Then, make a customer profile before linking and making a project. Since you have the account to track funds set up, create a budget to associate them in one place for reporting purposes.

 

A similar process for Class Tracking. The difference is that, when creating the budget, you need to select the Subdivided radio button to choose a class, customer, or location. Additionally, classes can be assigned to the entire transaction or to each line item within a transaction.

 

I recommend consulting an accountant for the best advice on tracking grants and for accurate guidance throughout the process.

 

You can generate a Profit and Loss or Balance Sheet report to review these grants by running a report in QuickBooks Online.


Whenever you need assistance with the task process or guidance on what to do next, feel free to collaborate with our QuickBooks Live Expert Assisted Team. These specialized professionals can help you with anything you need for your business.

Please respond to this thread if you have any other questions or need assistance with the tracking transactions. We’re here to help.

S
sgray98660-gmailAuthor
May 10, 2025

Thanks for your reply. Yes, I know I can set it up either way. What I'm asking is advice on the BEST way to set up grant tracking. The grant reimburses us for approved expenses in the budget. There is no "profit" to track as there is no markup. The information provided was helpful, but I was hoping to hear how others have handled this and how it worked best for them. 

B
BabyB
May 10, 2025

Given that the service is not completed yet, it's best to use or create a project to track the budget expenses, sgray98660. I'll provide further details on this matter below.

 

In the project feature, you can create a profitability report to evaluate your financial position. Once you complete your service, ensure to include the invoice in the project documentation. For better tracking and accurate accounting practices, we suggest consulting a professional for guidance.

 

Once you run a profitability report, export it to access the data outside QuickBooks.

 

You are always welcome to post again whenever you need further assistance regarding grant tracking in QuickBooks Online. The Community team is here to help.

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