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jn656
Level 2

Entering church donations/journal entries

I am a new user to Quickbooks Online.  When I enter my church donations, do I also need to do a journal entry for each person's donation?  When I was using Quickbooks Desktop I did a journal entry for each donation moving it from Accounts Receivable account to the Tithes/Offerings account.  Any help would be much appreciated.

Solved
Best answer March 02, 2022

Best Answers
LieraMarie_A
QuickBooks Team

Entering church donations/journal entries

Hi there, @jn656. I'm here with some information regarding tracking fund donations.

 

You don't need to do a journal entry in addition to recording a sales receipt. Each sales receipt has a corresponding entry that increases a revenue account. Then, the funds are automatically added to your financial records. Thus, you don’t need to input them separately.

 

Once you receive a donation, record the receipt. Here's how:

  1. Create a sales receipt for the donation.
  2. Select Customize, then choose your donation template.
  3. Make sure to select the donor and donation item you set up.
  4. Select the Payment method dropdown, then choose how you receive the donation.
  5. Select Save and close or Save and send if you want to email your donor a receipt of their donation.

 

To see its transaction journal, follow these instructions:

  1. Go to the Sales menu and select the All Sales tab.
  2. Find and click the transaction.
  3. At the bottom of the page, click More.
  4. Select Transaction Journal.

 

You can also create a bank deposit instead if you simply need to record the money donated to your organization. You can also refer to this article for your convenience: Track funds you receive from donors in QuickBooks Online.

 

Feel free to swing by anytime you need help with recording donations. The Community is always here to help.

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9 Comments 9
Ethel_A
QuickBooks Team

Entering church donations/journal entries

Let me walk you through recording church donations in QuickBooks Online, @jn656.

 

To begin, you must first establish a donor by completing the steps below:

 

  1. From the left menu, go to Sales, then the Donors tab.
  2. Select New Donor from the drop-down menu.
  3. Click Save after entering the donor's information.

The following stage is to create items for tithes and offerings.

 

Here's how:

 

  1. Go to the Gear icon located in the upper right-hand corner.
  2. Under List, click Products and Services.
  3. Click the New button, and select the Type.
  4. Enter the information, and click Save and Close.

I would also recommend asking assistance from your accountant to set up an account while creating the items. It is to ensure that your reports are correct.

 

You may also utilize the class tracking function to divide transactions between different accounts: How to Set Up and Use Class Tracking.

 

Finally, go to the Plus icon and choose the transactions under Donors to begin recording transactions to your donors.

 

Let me know if you have any other questions or concerns about recording church donations in QuickBooks Online. I'm always here to help.

jn656
Level 2

Entering church donations/journal entries

I have my donors all set up.  I just need to know if I need to do a journal entry for each donation that I record or if I just enter the donations then click Make Deposit.

Fiat Lux - ASIA
Level 15

Entering church donations/journal entries

@jn656 

I would recommend to use the Sales Receipts and the Class feature to records donations/tithe/offering.

jn656
Level 2

Entering church donations/journal entries

Thank you!  Yes, I use the Sales Receipts to record the tithes, just didn't know if I need to do a journal entry for each one in addition to recording it in the Sales Receipts.

LieraMarie_A
QuickBooks Team

Entering church donations/journal entries

Hi there, @jn656. I'm here with some information regarding tracking fund donations.

 

You don't need to do a journal entry in addition to recording a sales receipt. Each sales receipt has a corresponding entry that increases a revenue account. Then, the funds are automatically added to your financial records. Thus, you don’t need to input them separately.

 

Once you receive a donation, record the receipt. Here's how:

  1. Create a sales receipt for the donation.
  2. Select Customize, then choose your donation template.
  3. Make sure to select the donor and donation item you set up.
  4. Select the Payment method dropdown, then choose how you receive the donation.
  5. Select Save and close or Save and send if you want to email your donor a receipt of their donation.

 

To see its transaction journal, follow these instructions:

  1. Go to the Sales menu and select the All Sales tab.
  2. Find and click the transaction.
  3. At the bottom of the page, click More.
  4. Select Transaction Journal.

 

You can also create a bank deposit instead if you simply need to record the money donated to your organization. You can also refer to this article for your convenience: Track funds you receive from donors in QuickBooks Online.

 

Feel free to swing by anytime you need help with recording donations. The Community is always here to help.

jn656
Level 2

Entering church donations/journal entries

Thank you so much for explaining it.  You were very helpful!

jroodman
Level 1

Entering church donations/journal entries

How do I account for a charge that Paypal levies when accepting donations? I really don't want to show the charge on the sales receipt.

 

Thanks in advance!

 

Charies_M
Moderator

Entering church donations/journal entries

Help is on your way, jroodman.

 

Let me guide you on how to handle church donations in QuickBooks Online (QBO).

 

To track the charges, you must first create Check or Expense transaction and then link it to the appropriate expense account. In any other case, create an account.

 

Here's how to create a Check:

  1. Go to+ New.
  2. Select Check.
  3. Fill in the necessary information.
  4. Select Save and close to close the check window.

Here's how to create an Expense:

  1. Go to + New.
  2. Then select Expense.
  3. Fill in the necessary information.
  4. When you're done, select Save and close.

You can also check out our guide on entering, editing, or deleting expenses in QuickBooks Online for your convenience.

 

I've added this reference as your guide in setting up a charitable donation: How to record donations or charitable contributions.

 

Let me know if you need any further assistance while working with donations. The Community is always here to help.

lkayazi2010
Level 1

Entering church donations/journal entries

Thank you for asking that question. Am also new to QB and am looking to use it for church offering and tithes management purpose. I hope someone here assist us with that answer

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