Question

How did you set up your with and without donor restrictions categories? Did you use class? If so, how do you create a statement of activities that is GAAP?

6 replies
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C

Candice14

Level 8

Good morning, @accounting-nivas.

It's great to see a new face here in the Community. I hope you're having a great day so far.

To get the best solution to your question, I recommend consulting with your accountant. They'll be able to give you the best accounting advice for your business. If you don't have one, no worries. Here's a link to find one near you: Find ProAdvisor.

In addition, check out this guide that can help you and your business out in the future: How to prepare and analyze a statement of cash flows.

This information should get you on the right track. Let me know what you're accountant says. I'll always be around to help if you need me again. Take care!

A

accounting-nivasAuthor

HI,

Sorry but that is not helpful. I am the accountant! I know how to get this to work on other nonprofit software because they have a "Fund" option that used to be used for UR, TR and PR. It can also be used for with donor restrictions and without donor restrictions. You can then run a SOA with each Fund in a column. All Expenses are always UR/without donor restrictions so all expenses correctly show up in the first column with only revenue items in the second/with donor restrictions column. Then a net assets released line is set up to release funds from with and without donor restrictions. QB SOA does nothing of the sort. It is not an SOA but an income statement. There is also no "FUND" designation.

So, my question remains, how do you recommend setting this up so that it works in accordance with GAAP?

Thanks, Tina

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SarahannC

Level 9

Hi Tina, thanks for getting back to us.

I can see you're very familiar with the accounting process. I'd like to provide a few details on what QuickBooks can do to be GAAP compliant.

I see that the GAAP (Generally Accepted Accounting Principles) are accounting practices that you follow as an accountant. Since QuickBooks was designed as a bookkeeping system, the program needs additional spreadsheets to get this thing done. Also, you can manually track and create it outside QuickBooks.

In your free time, you may want to check QuickBooks resources: Help Articles. It includes information on how to handle QuickBooks reports, transactions, and taxes.

Please visit again if you have other questions or any concerns about QuickBooks. I'd be glad to have you back and help you in any way that I can. Take care and stay safe always.

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