show previous years donations in current budget

AAACERT · ‎January 23, 2025

we are a nonprofit. Our members pay their dues in December for the next year. We also have a number of people that give donations as they pay their dues. Is there a way to link these donations and dues to the following year's budget?

Right now, I only see the dues and donations impacting 2024 info. When I run the budget report for 2025 there is no income (dues and donations) being reported.

Perhaps a new account for anticipated dues/donations that we credit and then when we get paid in December we reduce this account?

ElijahStownton · ‎January 23, 2025

If your members pay dues in December for the following year, and you want those dues and donations to reflect in the next year’s budget, you’re on the right track with your idea of using a temporary holding account.

Here’s how you can handle it in QuickBooks:

1. Create a Deferred Income Account. Set up a liability account called something like Deferred Dues/Donations. This account will temporarily hold the income received in December that applies to the following year.

2. Record Payments in December. When you receive dues or donations in December, record them as income in the Deferred Dues/Donations account instead of your regular income accounts. To do this:
- Go to the Receive Payment or Make Deposit screen.
- Choose Deferred Dues/Donations as the account for these transactions.

3. Adjust in January. At the start of the new year (January 2025), move the balance from Deferred Dues/Donations to your regular income account, such as Membership Dues or Donations. You can do this with a journal entry:
- Debit the Deferred Dues/Donations account.
- Credit the appropriate income accounts (Membership Dues or Donations).

4. Include Deferred Income in the Budget. When creating your budget for 2025, include the anticipated deferred dues/donations as part of your income. Since the adjustment will hit your income accounts in January, it’ll show up correctly in reports.

This approach allows you to reflect the income in the correct fiscal year while still tracking when it was actually received. It also keeps your financials clean and aligned with accrual accounting principles, which is important for nonprofits.

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ElijahStownton · ‎January 23, 2025

If your members pay dues in December for the following year, and you want those dues and donations to reflect in the next year’s budget, you’re on the right track with your idea of using a temporary holding account.

Here’s how you can handle it in QuickBooks:

1. Create a Deferred Income Account. Set up a liability account called something like Deferred Dues/Donations. This account will temporarily hold the income received in December that applies to the following year.

2. Record Payments in December. When you receive dues or donations in December, record them as income in the Deferred Dues/Donations account instead of your regular income accounts. To do this:
- Go to the Receive Payment or Make Deposit screen.
- Choose Deferred Dues/Donations as the account for these transactions.

3. Adjust in January. At the start of the new year (January 2025), move the balance from Deferred Dues/Donations to your regular income account, such as Membership Dues or Donations. You can do this with a journal entry:
- Debit the Deferred Dues/Donations account.
- Credit the appropriate income accounts (Membership Dues or Donations).

4. Include Deferred Income in the Budget. When creating your budget for 2025, include the anticipated deferred dues/donations as part of your income. Since the adjustment will hit your income accounts in January, it’ll show up correctly in reports.

This approach allows you to reflect the income in the correct fiscal year while still tracking when it was actually received. It also keeps your financials clean and aligned with accrual accounting principles, which is important for nonprofits.

GianSeth_A · ‎January 23, 2025

Yes, there's a way to link the donations and dues to the following year's budget in QuickBooks Online. Also, your idea of using a new account to track anticipated dues and donations is a good solution. AAACERT. Here’s a detailed process to achieve this:

1.) Go to the gear icon at the top right corner of the page.

2.) Select Chart of Accounts and click New.

3.) On the Tab, scroll down and choose Other Current Liabilities as the Account Type.

4.) Name the account as Anticipated Dues and Donations.

Whenever you receive dues and donations in December for the next fiscal year, record them in the “Anticipated Dues and Donations” account.

In depositing transactions, make sure to take note the following:

Debit: The bank account is where the payment is received.
Credit: “Anticipated Dues and Donations” account.

Moreover, At the start of the new fiscal year (e.g., January 1), transfer the funds from the Anticipated Dues and Donations account to the actual income accounts (e.g., Membership Dues, Donations).

In Creating a journal entry, take note of the following:

Debit: “Anticipated Dues and Donations” account.
Credit: Appropriate income accounts (Membership Dues, Donations).

To do it, you can follow the steps I'll be providing:

Go to + New at the top left corner of the page then select Journal entry.
Set the date to the first day of the new fiscal year.

For more details, I recommend contacting your accountant to help you track the donations correctly and avoid book discrepancies.

You can explore this article it gives you more insights in reviewing the fiscal year reports and customizing: Create budgets.

For future reference, you can visit this article to learn about tracking and recording: Export your reports to Excel from QuickBooks Online.

Furthermore, with QuickBooks Live, you have a powerful ally in maintaining your nonprofit’s financial health, ensuring your records are accurate, and your budgeting is transparent. If you need more personalized assistance or have any questions, feel free to reach out QuickBooks Live bookkeeper at any time.

Should you need any further assistance or have more questions, don’t hesitate to reach out—your diligence in managing your nonprofit’s finances is truly admirable, and I'm here to support you every step of the way. Have a wonderful day ahead!

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show previous years donations in current budget