I understand the unique challenges and responsibilities that come with managing restricted funds, Sandy.
Yes, setting up restricted funds as sub-accounts of the bank account where the funds are held can be a strategic approach for managing your non-profit's finances. In QuickBooks Online, you can create subaccounts to break down your expenses, income, and other account types in more detail. This organizational method allows you to maintain clear visibility and separation of funds, making it easier to track and manage transactions related to specific restricted purposes.
By creating sub-accounts under the main bank account, you can allocate funds to various restricted categories or projects. This helps maintain accurate records and enables you to generate financial reports that reflect the utilization of those funds. For detailed steps, you can utilize this link: Create subaccounts in your chart of accounts in QuickBooks Online.
I also suggest consulting with your accounting or financial advisor to help with the setup. They can also provide tailored advice based on your non-profit's specific needs, regulations, and reporting requirements.
Additionally, when it’s time to reconcile, you only need to reconcile the parent account. This is because all transactions in the subaccounts roll up into it.
Should you have any further queries or require additional assistance, please feel free to ask anytime. I'm here to provide guidance tailored to your non-profit's unique needs.
