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Level 1

Business in the Business of Running Conventions -- Project vs Category vs Class

I have a client -- using QBO -- that holds conventions.  Income & expenses start in one year and complete the next.  

 

For accounting purposes, I was thinking about their conventions like a building project, starting at a time and incurring income & expenses until the project is complete.  Without a specific customer.

 

I need to track each annual convention P&L separately and be able to compare from year to year and compare income streams for each convention to the corresponding cost center.  I also need percentage comparatives to income vs costs (if possible).    The client was even thinking about changing their FYE to align with the convention period.  I said this is not necessary because nearly every good accounting software product can track projects over different, non-annual periods.

 

Each convention is not tied to a customer, but I thought about using 'Projects' because I believe this will produce the comparative financials that they want.  However, as these are conventions, there is no specific customer.  I could set up a Dummy Customer for each annual convention...???  Say, "Customer 2019", "Customer 2020", etc.    I don't know if a Dummy Customer will work as the client actually has hundreds of subscribers for each convention; can I have a project with income coming in from different "invoicing" customers?

 

Also, thinking about the future, would I be able to possibly do sub-projects, if necessary?  Say two or three conventions that start accruing income & expenses at different times, but are all held in the same year (in case they decide to expand their business).  

 

I thought about assigning classes, but I don't want 'Class'  assignments, long passed, to keep showing up in financials with 'zero' in the columns.  I am also not sure that 'Class' will give us the comparative financials requested.

 

I don't know if 'Categories' will work for this type of project accounting, but I may be wrong...

 

Does anyone else have experience with this type of business?  If not,  any brainstorming is greatly appreciated.  

 

Deb 

 

 

 

 

 

 

Solved
Best answer July 28, 2020

Best Answers
Highlighted
Level 15

Business in the Business of Running Conventions -- Project vs Category vs Class

A convention, just like a trade fair, should be a class in my opinion. Classes do not zero out they maintain their transactions, it is the reporting date of the report being viewed that makes the difference. Using a class allows for a P&L by class too.

Using a class allows you to track that same convention using that same class year after year since the report date range governs the data being shown. That also allows for running more than one convention.

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2 Comments
Highlighted
Level 15

Business in the Business of Running Conventions -- Project vs Category vs Class

A convention, just like a trade fair, should be a class in my opinion. Classes do not zero out they maintain their transactions, it is the reporting date of the report being viewed that makes the difference. Using a class allows for a P&L by class too.

Using a class allows you to track that same convention using that same class year after year since the report date range governs the data being shown. That also allows for running more than one convention.

View solution in original post

Highlighted
Level 1

Business in the Business of Running Conventions -- Project vs Category vs Class

Thank you so much!  Yes, you are absolutely correct.  Class will give me what I need and it is exactly like a trade fair. Of course, picking the dates will eliminate any 'zero' columns.

 

I guess I was trying too hard, overthinking this.  Thank you so much for the correct, straightforward answer. :)

 

 

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