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Level 1

How do I set up the financial statements for a nonprofit?

Hi there! I'm having issues with running the reports for my nonprofit through QBO. As I understand it, income sources (donations, program fees, etc) should be classed as 'Unrestricted Net Assets' and expenses should be classed as the fund they align with (Program, G
3 Comments 3
QuickBooks Team

How do I set up the financial statements for a nonprofit?

Hello, @userjon-mulhearn.


You'd want to make sure that your account's Tax Form is configured for Nonprofit Organization. This way, QuickBooks will automatically generate the correct set of financial statements. Let me guide you in doing so. 

  1. Go to the Gear icon in the top right corner.
  2. Select Account and Settings.
  3. Choose the pencil icon in the Company Type section.
  4. From the Tax form drop-down, pick Nonprofit organization (Form 990).
  5. Click Save.
  6. Hit Done.

Once completed, let's make sure to log out and log in from your QuickBooks account. This is to make sure that the changes you've made will flow into your account. Now, you can go to the Reports page and access your financial statement.


On the other hand, Unrestricted Net Assets, Permanently Restricted, and Temporarily Restricted accounts are currently not available as an account detail type in QuickBooks. In the meantime, your transactions are recorded under the Owner's Equity account. 


Lastly, I'd recommend consulting with an accountant so you'd be guided accurately in setting up the accounts in your chart of accounts. You can also check this article for more information about fund accounting for non-profits: Fund Accounting for non-profits.


Get back to us here if you have other questions about generating reports and statements in QuickBooks. I'm always here to help.

Level 1

How do I set up the financial statements for a nonprofit?


Thanks for getting back so quickly! 

I have already changed the tax form to 990, so I don't think that's the issue.

In terms of Unrestricted, Temp Restricted, and Restricted Net Assets, you mention that those are available as account types, but I don't see any options when I try setting those up as accounts? Am I missing something?



QuickBooks Team

How do I set up the financial statements for a nonprofit?

Thanks for coming back to the Community, userjon-mulhearn.

I appreciate following the resolution shared by my peer and letting us know the result.

You didn’t miss anything when setting up the accounts since Unrestricted Net Assets is unavailable in QBO. As mentioned by @IamjuViel, I still recommend consulting with an accountant. They can suggest which account to use to track your income and expenses. Then, make sure each one is classed accordingly.

I can help run a search to find an account. Visit the following site and enter your city or Zipcode to view the complete list: ProAdvisor.

Once you have the complete details, you can start creating the accounts in QBO. For future reference, I’m adding an article that contains tips on how to perform tasks efficiently when using the program: How Nonprofit Organizations Use QuickBooks Online.

Stay in touch if you need further assistance while working in QBO. I’ll get back to help and make sure you’re taken care of. Enjoy the rest of the day.

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