How do I define nonprofit Net Asset accounts?

Thanks for visiting us here in the Community, TomInAiken.

I can share some insights about the account detail types in QuickBooks Online (QBO).

You're right that Permanently Restricted, Temporarily Restricted, and Unrestricted are not currently available as the account detail type in QBO. Right now, we are unable to add more types when creating an account.

To make sure you've selected the correct type, I suggest consulting with your accountant. They'll be able to help you set up the equity accounts correctly.

Check out this article for more insights about adding a new account: How to create a new parent account or subaccount. 

I'm glad to provide further assistance should you have any questions. I'm wishing you and your business continued success.

So how do I define the three required net asset equity accounts? None of the Detail Types pertain to a nonprofit.   Is Owner Equity the closest Detail Type that QBO has? Even though it is for an S Corp?  How were these equity accounts defined in QB desktop nonprofit edition?

And, I can talk to my accountant all day long and still not be able to define those equity accounts properly in QBO.

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@PreciousB wrote:

Thanks for visiting us here in the Community, TomInAiken.

 

I can share some insights about the account detail types in QuickBooks Online (QBO).

 

You're right that Permanently Restricted, Temporarily Restricted, and Unrestricted are not currently available as the account detail type in QBO. Right now, we are unable to add more types when creating an account.

To make sure you've selected the correct type, I suggest consulting with your accountant. They'll be able to help you set up the equity accounts correctly.

 

Check out this article for more insights about adding a new account: How to create a new parent account or subaccount. 

 

I'm glad to provide further assistance should you have any questions. I'm wishing you and your business continued success.

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Thanks for coming for coming back to the Community, TomInAiken.

You're right. The closest detail type we can choose is the Owner's Equity.

As for QuickBooks Desktop, we don't have an option to choose a detail type.

Please reach out to me if there is anything else I can help you with.

Just wondering how you had solved this?

Hello there, @phylwith.

As mention by my colleague above, we are unable to add more types when creating an account.

To ensure you've chosen the correct type, I recommended consulting with your accountant. They'll help you with the equity accounts correctly.

For further details about sub-accounts, you can check these articles:

• How to create a new parent account or subaccount
• About bank or credit card subaccount setup

You can also check this article for more information about fund accounting for non-profits: Fund Accounting for non-profits.

Please let me know if you need any help with QuickBooks. I'm always here to assist. I hope to hear about your success!

Just wondering if quickbooks online has worked on this problem so that nonprofits can actually have the categories they need?

Just wondering quickbooks has solved this problem and added the tax section options needed for nonprofit net assets?

Thank you for joining the thread, @Mary Anne1.

At this time, QuickBooks Online (QBO) doesn't have the option to add another category type for nonprofit net assets.

I understand that this option is beneficial to you and your business. Since this option isn't available, I suggest submitting feedback directly to our product engineers. They may look into this suggestion further and consider adding the option in QBO. To submit feedback, you can go to the Gear icon and select Feedback. Then, enter your suggestion and click Submit Feedback.

You can also visit our Customer Feedback page. This will help you track the status of your product request and get the latest updates from our developers. Updates such as how the recent enhancement made to QBO helps our business owners, like you.

Please touch base with me here for all of your QuickBooks needs. I'm always happy to help.

Has there been any effort made to improve this? Quickbooks online is marketed as being "The Best Church Accounting Software", but like many non-profits, we function on fund-based accounting, and having net assets with restricted and unrestricted options is critical to operations. 

I understand how pivotal it is for you to have accurate financial reporting that aligns with fund-based accounting principles, churchaccountant. 

At the moment, the specific account types you're looking for are still unavailable in the program. While QuickBooks Online offers a versatile platform for various industries, including nonprofits, we acknowledge that there are unique nuances that organizations like yours require.

Your input sheds light on the significance of having net assets with restricted and unrestricted distinctions for church operations. I want to assure you that your feedback doesn't go unnoticed. We're committed to consistently prioritizing features that matter most to our valued customers. By sharing your thoughts, you're contributing to the QBO's growth and enhancement. Here's how:

1. Sign in to your company.
2. Go to the Gear icon.
3. Choose Feedback.
4. Enter your comments in the description box.
5. Click Next to complete the process.

In the interim, I encourage consulting with a qualified accounting professional to determine the most closely aligned account type for your intended asset categories.

Finally, here's an article that you can read to help keep tabs on the money you receive from your donors: Track donations.

I'm always here to support you on your financial journey. If you have further questions, concerns, or ideas, don't hesitate to drop me a comment below.