How to Properly Handle Donor Restricted Funds in QuickBooks | Nonprofit Accounting
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- Опубликовано: 5 сен 2024
- Quickbooks makes it easy to handle donor-restricted funds for your nonprofit. Let me show you how.
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Handling donor-restricted funds in QuickBooks is crucial for accurately managing your nonprofit accounting. To properly manage your donor-restricted funds, it is important to create separate accounts in QuickBooks to distinguish between unrestricted and restricted funds. This is just the first step when it comes to properly handling donor-restricted funds in Quickbooks, but there are many more that I will share in today's video. By following these practices, nonprofits can demonstrate financial responsibility, and build stronger relationships with their supporters and stakeholders.
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Thanks for stopping by! What interesting fact stood out to you the most during the video? Let me know down below.
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This is awesome!
Thanks for the video! It was very helpful. I would have loved to have seen as much time devoted to the Projects method as to the Locations method, since I am planning to use Projects.
1. Do you use the same methodology and create a journal entry? If so, when does that happen?
2. We have a Fundraising Events Expense. What type of expense would that be? Other? I want to make sure it is set up properly.
Again, thanks. This is the best explanation I have seen anywhere, and believe me, I've looked around A LOT!
Very insightful
Do you have a video showcasing Quickbooks' different features? As a virtual learner, visual aids help me understand the features you are stating. Thanks!
I don't but I can make one. I will add it to the rotation. Thank you for raising this and making the request.
Hi @Germeen, can you explain how the Into-Out of Restricted Net Assets account is used?
Also, how are the Beginning and YTD Change equity accounts used? Are the equity accounts similar to what a for-profit org would show in their Opening Balance Equity and Owner Contribs/Distributions accounts?
Hi Germeen. Thanks so much for the video as I am a bookkeeper in training. You created a equity sub account under “With Donor Restrictions “ called “Beginning” which you didn’t explain when to use. Is it used when the initial funds come in from the grant?
Great!
Do you recommend a method of tracking *what* to release when it's more complicated than just "by project?" For example, if one donor will fund these three programs, but this donor only funds travel in one program, and another donor only covers one program, and a fourth covers any program, but it's meant to be time-bound?
Option 1 is an interesting approach! Is it possible to mix both options or would you advise against it?
I'm going to be doing both approaches. The first is helpful to see the total funds with donor restrictions, and projects are helpful to see each grant, donation, etc. and it's specific restrictions. At least, that's my (still learning) take!
Germeen have you done a video on moving from QuickBooks Desktop 2021 Premiere Nonprofit Edition to QuickBooks Online Plus Nonprofit edition? What does Plus do with the features that Desktop has that Online Plus does not - such as "other names" -what becomes of that data?
@germeeng700 thank you, super helpful! One question. On the statement of financial position in QBO, is there a way to break out the "net revenue" (net assets) line to show "net assets with donor restrictions" and "net assets without donor restrictions"?
Yes both are created as sub accounts under net assets