How to include restricted income accounts in a charity's chart of accounts. I am qualified acct considering quickbooks free trial. Also need restr. fund mgt reprtg

Hello there, michael-perry100.

In QBO, there isn’t a direct way of tracking restricted funds. We can use the Class feature to track income, expenses, or profitability by business segment.

Here’s how:

1. Go to the Gear icon to Account and Settings.
2. Choose the Advanced tab to see the Categories section.
3. From there, mark the box for Track classes.
4. Check Warn me when a transaction isn’t assigned a class. This is optional, but it's good to turn on so when you look at reports, you know everything got classified.
5. Under Assign classes select One to entire transaction or One to each row in transaction.
6. Click Save and Done.
   

Now that we’ve activated the feature, let’s create a class for each segment of the business. Here’s how:

1. Tap the Gear icon to choose All Lists under Lists.
2. Hit the Classes link to open the All Lists page.
3. From there, click the New menu to add a class.
4. This will open a window where you’ll have to enter the information.
5. Click Save once done.

The Classes drop-down will show when you create a transaction. Run the Profit and Loss Report to see the activity of the grant.

To open the statement, tap the Report menu on the left panel to enter Profit and Loss Report in the field box. You can also use Customize this report to only display transactions using your Restricted Funds class.

For more insights, let me share the Get started with class tracking in QuickBooks Online guide. It outlines the instructions on how to set up the class list and steps to organize your customer and vendor transactions.

Keep in touch if you have any clarifications or other concerns. I’m here to help you.