I need to show restricted vs. unrestricted funds in my Statement of Financial Position (balance sheet) on QB. Right now we have sub-accounts set up for our main bank account to segregate this out, but this makes bank reconciliations hard. Is there any way to use classes not just for the Statement of Financial Activity (P&L) but also for the balance sheet?
Concise and clear. Impressive talent to keep me interested from beginning to end without any graphs or other audiovisual aids other than herself. That is the true talent of a teacher.
Appreciated the intro to classes and the top level requirements. Well presented!!! Some screen shot/report examples would be great, but probably not worth your time to set up a demo db. Might be fun to do a "Life of an Event" type vid where accounts are created, transactions applied and end with the statement of activity by class.
I agree. I'm coming into a new job and the accounts are redundant. Do you have a draft or model what the chart of account should look like for a non profit? Can I make these sub accounts inactive for 2024?
So it was recommended to me by accounting firm to use Projects to track each project expenses, hours/wages etc. Should I still use classes to track each project? or just have one project class umbrella and then run all expenses/wages through projects? Do you have a video on how best to use the projects feature for non-profit programs?
Hi, I loved the video. What's the most effective COA setup for a church with multiple departments, branches that stem from the departments, and overall operations? We definitely need the ability to drill-drown, but keep a clean Statement of Activities like you said. Do you have a video specific/similar to that? Thanks in advance!
Hi, any books you can recommend to help me understand how funds are managed in non profits. When it comes to restricted, unrestricted funds, loan and replenish, how to understand overhead/operational cost and how to help laymen people understand that out of every dollar, a percentage is used for costs..thank you
At a high level yes. For example, you'd have an account for ind contributions, foundation grants, corporate grants, eyc. It all depends on your sources.
Don’t tie your Functional Expenses into your COA. You end up with duplicate accounts. Stop crowding the financials. The purpose of Functional Expenses: where do they fall? Not only the category, but are these functional expenses making money? Too many users under Functional Expenses. Natural general categories. A statement of activities needs to be streamlined. Keep it simple and clear. Maximize the QBO software use. Run your reports in different ways. Use classes to track Functional Expenses: administrative, programs with sub-classes for each individual program, i.e., gala, fundraising. Now you can run your statement of activity by "class."
@Germeeng700, I struggle with effectively using QBO classes. When I run a P&L by class it shows all classes -- even classes marked deleted/inactive. My reports get so W-I-D-E that they're hard to read. How do you address these situations? Related question . . .where do I track income generated from capital campaigns? Should there be a separate sub-class for each capital campaign? Or can I use the program class and then use tags for each capital campaign?
The report should only show deleted/inactive classes for periods where the class was used in the past. If you're running current period reports, you should only be using active classes. As for tracking income generated from capital campaigns it depends on many factors. A few being is it one campaign that you run once a year, or is it multiple campaigns, and how do you want to see it on the FS. You can use a general income account and tag the various campaigns by classes OR use the program class and implement tags but it really depends on the specifics.
Thanks for watching! Let me know which information stood out to you in today's video and I will see you in my next one.
I need to show restricted vs. unrestricted funds in my Statement of Financial Position (balance sheet) on QB. Right now we have sub-accounts set up for our main bank account to segregate this out, but this makes bank reconciliations hard. Is there any way to use classes not just for the Statement of Financial Activity (P&L) but also for the balance sheet?
Thanks for making this video. You helped me not to make a big mistake.
Never have I ever lol Googled something and had a video actually understand my question and answer it so clearly. Thank you!
Concise and clear. Impressive talent to keep me interested from beginning to end without any graphs or other audiovisual aids other than herself. That is the true talent of a teacher.
I thank God I found you! New subscriber 👋🏽
Hello! This was a perfect summarization, and I can't wait to share it with my board of directors. Thank you!
Thank you for the clarity on non-profit accounting using Quickbooks.
You're welcome!
Appreciated the intro to classes and the top level requirements. Well presented!!! Some screen shot/report examples would be great, but probably not worth your time to set up a demo db. Might be fun to do a "Life of an Event" type vid where accounts are created, transactions applied and end with the statement of activity by class.
New fan here! Thank you so much for such helpful content. What would you say for using custom fields for functional expenses instead of classes?
Thank you! ☺
I agree. I'm coming into a new job and the accounts are redundant. Do you have a draft or model what the chart of account should look like for a non profit? Can I make these sub accounts inactive for 2024?
So it was recommended to me by accounting firm to use Projects to track each project expenses, hours/wages etc. Should I still use classes to track each project? or just have one project class umbrella and then run all expenses/wages through projects? Do you have a video on how best to use the projects feature for non-profit programs?
Awesome! Thx!
Hi, I loved the video. What's the most effective COA setup for a church with multiple departments, branches that stem from the departments, and overall operations? We definitely need the ability to drill-drown, but keep a clean Statement of Activities like you said. Do you have a video specific/similar to that? Thanks in advance!
Good video, very interesting and informative
Hi, any books you can recommend to help me understand how funds are managed in non profits. When it comes to restricted, unrestricted funds, loan and replenish, how to understand overhead/operational cost and how to help laymen people understand that out of every dollar, a percentage is used for costs..thank you
Yup -
Streetsmart Nonprofit Financial Basics for Nonprofit Managers
Accounting Tools Nonprofit accounting a Practitioner's Guide
Nonprofit Bookkeeping & Accounting for Dummies
How does this apply to income? Do I need an income account of the COA for all my sources we track?
At a high level yes. For example, you'd have an account for ind contributions, foundation grants, corporate grants, eyc. It all depends on your sources.
Will QBO run a statement of functional expenses? Or is that just the "statement of activity by class"?
Its the statement of activity by class... depending on what you're trying to display you can hide the revenue portion or not.
Don’t tie your Functional Expenses into your COA. You end up with duplicate accounts.
Stop crowding the financials.
The purpose of Functional Expenses: where do they fall? Not only the category, but are these functional expenses making money?
Too many users under Functional Expenses. Natural general categories.
A statement of activities needs to be streamlined. Keep it simple and clear.
Maximize the QBO software use. Run your reports in different ways.
Use classes to track Functional Expenses: administrative, programs with sub-classes for each individual program, i.e., gala, fundraising. Now you can run your statement of activity by "class."
@Germeeng700, I struggle with effectively using QBO classes. When I run a P&L by class it shows all classes -- even classes marked deleted/inactive. My reports get so W-I-D-E that they're hard to read. How do you address these situations? Related question . . .where do I track income generated from capital campaigns? Should there be a separate sub-class for each capital campaign? Or can I use the program class and then use tags for each capital campaign?
The report should only show deleted/inactive classes for periods where the class was used in the past. If you're running current period reports, you should only be using active classes. As for tracking income generated from capital campaigns it depends on many factors. A few being is it one campaign that you run once a year, or is it multiple campaigns, and how do you want to see it on the FS. You can use a general income account and tag the various campaigns by classes OR use the program class and implement tags but it really depends on the specifics.