Created with Sketch.Learn about PPP and Loan Forgiveness, stay informed with the latest changes.
Created with Sketch.Need help with 1099's or other Year End topics? Visit our Year End Resources page.
Created with Sketch.New to QuickBooks or using a new product? Visit our Get Started resource page to help you get going.
Created with Sketch.Need to make changes to your account? Visit the Account Manager Portal.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

GRANT MONEY

I RECEIVED A U. S. GOVERNMENT GRANT FOR MY MEDICAL PRACTICE FROM HEALTH AND HUMAN SERVICES TO HELP PAY FOR COVID-19 TESTING BUT ALSO FOR LOST REVENUE THE DUE TO THE EPIDEMIC. HOW DUE I RECORD THE DEPOSIT OF THE GRANT MONEY IN MY QUICKBOOKS ACCT AND HOW DO I CHARGE EXPENSES AND LOST REVENUE AGAINST IT?

4 Comments
QuickBooks Team

GRANT MONEY

Hi wfgodot!

 

First of all, we want to thank you for your services. May you stay in good health to help others survive through this tough time.

 

You can record the grant as a deposit to your business account. At the same time, you can create the profile of the agency where the funds came from and the account to categorize the grant. I'll show you how.

  1. Go to Banking and choose Make Deposit.
  2. In the Deposit To field, choose the account where the money goes in.
  3. Click the RECEIVED FROM field and choose <Add New>.
         3.a) Select the Other name type and click OK. Click the picture to make it bigger.
    other.PNG
         3.b) Enter the name of the organization that gave you the grant and hit OK.
                 Example: US Government / SBA
  4. Click the FROM ACCOUNT field, click <Add New>
         4.a) Select Other Income in the Other Account Types drop list. Click the picture.
    create income account.PNG      4.b) Select Continue and name it something like COVID-19 Grant Income.
         4.c) Click Save & Close.
  5. Enter a memo. Something like COVID-19 Grant
  6. Enter the amount and hit Save & Close.

Since this deposit is categorized as other income, it will reflect in the Income section of your Profit and Loss report and will offset your total expenses. You may stop there.

 

If you really want to reduce/offset the total amount of a particular expense account using this grant, you can do that via journal entry. However, I highly suggest you speak with your accountant about the accounts to be used.

 

If you have additional questions, you can always go back to this thread. Stay safe!

Community Champion

GRANT MONEY

Yes as @JessT Says, grants are income. Income is all money received that is not a loan even though some might be free of taxes, which is your situation.

 

Two methods to track the dispersed funds from the grant.

 

Class tracking. Add a class for the grant and add the class to all grant related expense (also tagging the grant income to that class)

 

Job costing. Instead of adding the SBA as an Other Name, add them as a Customer:Job and post expenses as billable to the grant job.

Level 1

GRANT MONEY

how do I record a grent thats not paided?

Moderator

GRANT MONEY

Thanks for joining us here, cacci.

 

You'll want to create a journal entry to record the unpaid grant in QuickBookd Desktop. Before doing so, I would recommend consulting with an accountant or bookkeeper on this, especially when it comes to recording the grant correctly.

 

Our Find-a-Pro-Advisor page will be able to assist in connecting you with a certified accountant or bookkeeper that also specialises in QuickBooks: Find an accountant.

 

I'll show you how to create a Journal Entry:

  1. Go to the Accountant menu.
  2. Choose Make General Journal Entries.
  3. Fill in the necessary information by adding the account from which you are moving the money.
  4. Click Save & Close.
    QBDTjournalentry.PNG

Here are some articles to become more familiar with managing Journal Entries in QuickBooks: 

If you wish to review the entries, you can do so by going to the bottom pane of the Make General Journal Entries window.

 

By default, only entries from the last month are displayed. To change or expand the list of entries, click from the List of Selected General Journal Entries drop-down list and select which period.

 

123.PNG

 

You can also check out this article about Transaction Journal report in QuickBooks Desktop for additional information.

 

Feel free to comment below if you have any other questions or concerns. I'm always here to help.

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us