I recently started as the treasurer at our church. I do have experience with quickbooks online bc I keep books for my husbands landscaping business however the funds are so different. Before me everything was tracked with excel sheets so I am now starting with a fresh Chart of accounts. There are roughly 30 categories of funds that I need to track with a running balance available. These funds are all within the same checking account. There are basically two different accounts. #1 money is donated for a specific mission. We collect the money and at the end of the month the money gets sent to that particular group. in other words we just house it and pay it forward #2 is funds that are donated and used within our church. For example, a donation is made to be used for flowers. I then need to track expenses used against that category. How is the best way to set this up. They #2 type of account will all have starting balances. Any advice?
I recommend using classes to track the designated funds and expenditures. You can then pull a P&L by class at any time and get a report with full detail for that designated fund.
Welcome to the Community.
The answer of @leann3 is a great help to keep track your expenditures and revenues. I'll just add a little more about class tracking in QuickBooks Online. This feature is only available in the Plus version, and you'll have to turn it on in the company settings.
To learn more about it, please check out this article: Using Classes and Locations in QuickBooks Online.
Here's a list of reports available: Available Reports in QuickBooks Online.
If you have any questions, please let us know. Thanks!
I was thinking classes but how would I have a starting balance then? Would having the designated funds as sub accounts to my checking account be better?
I'll chime in this thread to help you enter the account's starting balance.
If the bank has a running balance, you can enter it as an opening balance when you first set it up.
As for your other question, you have the option to add a sub-account on your checking account. Please note that everything in your sub-accounts roll up to the parent account.
Check out this article for the detailed steps: How to create a new parent account or sub-account.
That's it. Let me know if there's anything else you need, I'll be around. Have a great day.
My designated funds are held in the checking acount. I realize I can track the income and expense by using class list. But how do I get a running balance for a designated fund when those funds are in the checking account?
Hello there, Gotmilk.
You can run a quick report for the checking account. Then, filter it to show the designated funds account only. This will help you track the running balance.
Just follow these easy steps:
Don't hesitate to get back to this thread if you have further questions.
How do you keep track if you don't use classes and locations? I am helping with a clean up and they use a spread sheet to keep track of them. I was thinking to do a JE to allocate to the correct expense and income accounts for these different funds/groups.
What do you think?
Thanks for joining this conversation, @K-M-SVirtual.
Since the organization you're working with doesn't use classes and locations feature to track designated funds/groups, then yes! You can use Journal Entry (JE) to allocate them to the correct expense and income accounts.
Before doing so, I highly suggest consulting your accountant or accounting professional for guidance on which account receives the debit and credit side of the transaction.
Here's to create a JE:
I'll add this article for more information: Create a journal entry.
After that, pull up the Transaction Detail by Account and filter it by JE to track the entries you've recorded. Here's how:
Just in case, I'll add these articles for future reference:
Reach out to me in the comment section below if you have any other issues or concerns, and I'll get back to you right away. I'll be here to assist. Have a wonderful day!
I'll second the suggestion to track these funds by class...it will make it easier at the end of the year to adjust any restricted equity accounts so you have a permanent record of how much each fund balance is.
This is how I handle fund accounting in QBO. If your different funds just need to be tracked separately, I just set up a class for each, and make sure to designate the class each time activity occurs.
If you're needing your books to adhere to GAAP accounting (i.e. separate treatment between Unrestricted and Restricted) I still use the classes mentioned above, but I'll also set up an Other Income account called "net assets released" or something similar, and each month/period make an entry to this account to zero out my net income for all the restricted activity, with the offset being the restricted equity account matching that fund on the balance sheet. This way, your P&L is appropriately tracking both the inflows and outflows of your restricted activity on your P&L, and your equity section of the balance sheet shows the correct balance of each fund.
Ang - I recommend leaving the bank accounts as-is, and handling any "balance" stuff by adjusting your equity accounts for each fund. I made another comment detailing how I do this, but please let me know if this doesn't make sense.