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?
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.
Go to Banking and choose Make Deposit.
In the Deposit To field, choose the account where the money goes in.
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. 3.b) Enter the name of the organization that gave you the grant and hit OK. Example: US Government / SBA
Click the FROM ACCOUNT field, click <Add New>. 4.a) Select Other Income in the OtherAccount Types drop list. Click the picture. 4.b) Select Continue and name it something like COVID-19 Grant Income. 4.c) Click Save & Close.
Enter a memo. Something like COVID-19 Grant
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!
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:
Go to the Accountant menu.
Choose Make General Journal Entries.
Fill in the necessary information by adding the account from which you are moving the money.
Click Save & Close.
Here are some articles to become more familiar with managing Journal Entries in QuickBooks: