QBO fund accounting

Classes are probably not the solution to keeping track of separate funds. Class is a tag, and it can be used in  P&L By Class report but the Balance Sheet by Class that QBO allows is never right.

Instead you should consider sub bank accounts for the various funds and also have multiple bank accounts.  

Example, monthly donations of $10k with $1k designated Building Fund, $1k should be moved out of operating funds into the building reserve.

All funds should add to all cash on hand in any and all bank accounts (after reconciliation)

Classes let you see what is chargeable to various projects like missions, food bank, building, parson pay, etc but a class report won't show you what is not classified 

Thank you for your response. I should have said we use the checking accounts on the balance sheet to represent our fund balance. But at month end, I can not take prev. Month balance + income - expenses and have it equal the new balance in each fund in the checking. For example

beg.bal.1.31.21 is 5000

donations are.   +. 3000

expenses are.    -  1000

end bal is.             3000 which is correct, because 4000 was capitalized

do I just add a column to force the balance? It makes it seem like something is incorrect when the traditional beg. Bal. +inc-exp=end bal does not work...my last church expensed everything, so it was correct. And so now I am confused. 

Thanks for getting back to us, Lyn725.

I can help share some information on how fund accounting works in QuickBooks Online. When using Fund Accounting in QuickBooks Online, you can use Class tracking and banking sub-accounts to track individual funds.

In order to track funds, you'll need to complete each of the following steps:

1. Turn on Class tracking.
2. Assign a Class to each fund.
3. Optionally set up a banking sub-account for each fund.
4. Run a Profit and Loss by a Class report to review income and expenses.

To learn more details, please check this article: Fund Accounting for non-profits.

I'd still suggest consulting your accountant for further guidance. This way, we can ensure your books are accurate in QuickBooks Online (QBO).

Please reach back out to me with any additional information on the issue so I can get you taken care of. Thanks for coming to the Community and take care.

Thank you for your response. However, we use Class tracking and Banking Sub-accounts to track individual funds.

I too am working in a church setting - with Restricted Fund accounting method in Canada.  Why is LOCATION not being recommended for use with the various Funds?  I think due to different taxation rules perhaps this is only viable in Canada?

Thanks for reaching out to us, @NFP_Hfx.

I can share some insights about this feature in QuickBooks Online. Can you please confirm what kind of funds are you referring to that you want to assign locations and what entries are you using? Any information will help.

You can use the Location feature to tag transactions from different sources or departments. However, unlike classes, you can only assign locations per transaction and not on individual line items you assign to an entry. You can use this feature if the accounts or funds on the transaction belongs to the same group.

Here is an article about locations and how to set them up: Set up and use location tracking.

Please come back here for the additional details or if you need further help with this topic. I'll be right here to help you out.

Are there plans to modify QBO to allow for the separate line item tracking of locations?

Are there any plans to modify QBO to include location tracking by line item?

Thanks for joining the Community and getting involved with this thread, Gamecock69.

I can certainly understand how an ability to track line items by location could be useful and have submitted a suggestion about it as of today.

You can also submit your own feature requests while signed in.

Here's how:

1. Use the Gear icon, then go to Feedback.
2. Enter your suggestion(s) in the Have feedback? window.
3. If necessary, attach a file with your Camera icon.
4. Select Next.
   
   

Your feedback's definitely valuable to Intuit. It will be reviewed by our Product Development team and considered in future updates. You can stay up-to-date with the latest news about your product by reviewing Intuit's Product Updates webpage.

I'll be here to help if there's any questions. Have a great Tuesday!

We just transitioned over to QBO and I am still trying to figure out an easy way to record deposits that need to be allocated to separate funds.  I have seen several  recommendations to setup bank sub-accounts for each fund. So if I make one deposit for $3,000 (donor wrote one check) that needs to have $1,000 going to three separate funds in QB I have to record three different deposit?  How does that $3,000 deposit show up on my bank reconciliation?  Still as one $3,000 deposit or three separate deposits of $1,000 each.  

Thank you for keeping up with this discussion, Omahmf.

I'll share a method for recording deposits in QuickBooks Online (QBO) to ensure accurate records.

If the deposits are meant for a different bank account, please enter them separately for each account.

However, if it's a single bank account with multiple donors, you can easily add each $1000 to the "Add to this deposit" section in the bank deposit window.

Additionally, please note that any amount reflected in your bank reconciliation will vary based on how you record these transactions. When recorded separately, three transactions will appear in your bank reconciliation. However, if it's entered as a single deposit, only one transaction will show.

Furthermore, explore this article to help accomplish a successful reconciliation: Learn the reconcile workflow in QuickBooks.

Don't hesitate to post again for more help recording deposits or other bank-related questions. I’m always here to assist you.