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SML
Not applicable

QB for Non-Profit

I'm setting up QB for a small fire district. Does anyone have a chart of accounts template they would be willing to share? Or advice on how to set it up? I have a chart for each fund (only three) need to know how to input those numbers..  I'm new to QB Non-Profit.

Thank you !!!

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Best answer 10-23-2017

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Established Community Backer ***

Re: QB for Non-Profit

The only difference (in my book) between using QB for a non-profit as opposed to a for-profit is __________________ (fill in blank with blank) You still have income and expenses.  You still have (hopefully) a year end positive income over expenses, which in your situation is not taxed. It may or may not have to be distributed (spent to zero) which will depend on your charter and your state law. I cannot imagine a case where a state would say to a fire company "spend every last dollar you take in and when you need to pay the lights or fuel the tricks we've got your back"

 

Your COA (chart of accounts) will consist of the income, expenses, AND assets you will record on the books. Even though you pay no taxes you are still required to capitalize and depreciate large purchases over time just like a for-profit entity. Look at the accounts you have used in the past on any forms you have filed or your annual financial report to the board.

 

A sampling of expense>

utilities, phones, 2-way radios, oxygen, fuel, water(unless your municipality donates the water) foam, small tools, mortgage interest on buildings, interest on capital purchases

Frequent Contributor *

Re: QB for Non-Profit

I work with a number of Fire Districts.  I have a basic Chart of Accounts which I use with one of them that I can share.  Keep in mind that it is also important to use classes.  The minimum classes any nonprofit should have is Program, General & Administrative, and Fundraising (the same columns that are on page 10 of the 990).

 

Hope this helps!

-Dawn

Nonprofit SuperGenius

  

9 Comments
Established Community Backer ***

Re: QB for Non-Profit

The only difference (in my book) between using QB for a non-profit as opposed to a for-profit is __________________ (fill in blank with blank) You still have income and expenses.  You still have (hopefully) a year end positive income over expenses, which in your situation is not taxed. It may or may not have to be distributed (spent to zero) which will depend on your charter and your state law. I cannot imagine a case where a state would say to a fire company "spend every last dollar you take in and when you need to pay the lights or fuel the tricks we've got your back"

 

Your COA (chart of accounts) will consist of the income, expenses, AND assets you will record on the books. Even though you pay no taxes you are still required to capitalize and depreciate large purchases over time just like a for-profit entity. Look at the accounts you have used in the past on any forms you have filed or your annual financial report to the board.

 

A sampling of expense>

utilities, phones, 2-way radios, oxygen, fuel, water(unless your municipality donates the water) foam, small tools, mortgage interest on buildings, interest on capital purchases

Frequent Contributor *

Re: QB for Non-Profit

I work with a number of Fire Districts.  I have a basic Chart of Accounts which I use with one of them that I can share.  Keep in mind that it is also important to use classes.  The minimum classes any nonprofit should have is Program, General & Administrative, and Fundraising (the same columns that are on page 10 of the 990).

 

Hope this helps!

-Dawn

Nonprofit SuperGenius

  

SML
Not applicable

Re: QB for Non-Profit

HI,

Thanks for answereing. If you would send me a copy of the Chart of accounts that would be wonderful! Is it possible to uplaod that into QB?  The fire District this is for has a general fund, Land and Facilities Fund and a Vehical Fund. The last two are used only for the purpose of allocating money each year for future purposes. The expenses are paid thru the general fund. I'm just looking for a base COA to work with. I have never used QB for non-profits before.

Thanks for your help, it realyy appreciated!

Frequent Contributor *

Re: QB for Non-Profit

Please check my profile so that you can email me directly (and then I will have your email address).

 

Yes - the Chart of Accounts can be uploaded directly to QBO.

 

-Dawn Brown

Established Community Backer ***

Re: QB for Non-Profit

"Does anyone have a chart of accounts template they would be willing to share?"

Your County and/or State has the requirements.

 

I teach QB and support lots of local governmental entities, and get referrals from the State local government services bureau, for town clerks, water, sewer, fire, schools, etc. I have a county water district under contract, for about 9 years now. Additionally, I set up a file for OK and MA systems. You need to Find those references and start with them. You track what you need to report as part of your Annual reporting.

 

"I have a chart for each fund (only three)"

 

You don't need to create multiple accounts for each fund. That is what Class Tracking is for.

 

I recommend the book Running QB in NonProfits, by Kathy Ivens.

 

"Your COA (chart of accounts) will consist of the income, expenses, AND assets you will record on the books."

 

Not necessarily; governmental accounting handles things like Asset and Liabilities differently, in QB. What you report and how you report it is Different. Example: Debt Service is Expense for a Town, but Reduces Liability for the Sewer/Water system.

Established Community Backer ***

Re: QB for Non-Profit

Hi @SML!

Here is a great presentation from QuickBooks Connect 2017 all about non-profits. Enjoy!

 

A Guide to Attracting and Serving Non-Profit and Government Clients - Jeff Wilson II - San Jose 2017

Established Community Backer ***

Re: QB for Non-Profit

Special Purpose Districts are not the same as a Not For Profit; they are Governmental Units, with taxing authority. That is the Most Siginifcant difference that should help you understand why they are Different.

 

My State provides a Chart of Accounts reference which must be used:

http://sfsd.mt.gov/LGSB/Accounting-AFR-Resources/01_BARSChartofAccount

 

My State provides financial reporting documents which must be used:

http://sfsd.mt.gov/AgencyAccountingResources

 

My State offers Training materials online and at their work sessions, including "Clerk School:"

http://sfsd.mt.gov/documentationtraining

 

My State has this portal:

http://sfsd.mt.gov/LGSB

 

You will want to connect with your County or State, as well, when you run the financials for this type of organization.

 

This is not the same as Not For Profit.

 

 

 

 

Frequent Contributor *

Re: QB for Non-Profit

But this is not the case for all FD's.  In my state (AZ), FD's are NFP's and not governmental units.  

Established Community Backer ***

Re: QB for Non-Profit

 "In my state (AZ), FD's are NFP's and not governmental units."

 

I would be surprised that this is a Private Charity. All you have to do is google:

arizona fire district accounting

 

to find answers, such as:

http://www.azfiredistricts.org/wp-content/uploads/2014/03/AFDA-Financial-Procedures-3.pdf

 

and:

"48-805 - Fire district; powers and duties; definition"

https://www.azleg.gov/ars/48/00805.htm

 

You seem to be a Special Purpose District.

 

In any case, your best reference is the Tax form your entity files, such as 990. If you report to a higher authority, such as County or State, you follow their requirements. There is no Generic listing; there is your Requirements.

 

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