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Income for Projects coming from internal sources
I am using QuickBooks Online to manage a non-profit's accounts. I want to use Projects to but most of the income for our projects comes from internal sources - a savings account or investment account. For example, if we have a capital project (not part of the operating budget), I transfer money from a savings or investment account to the checking account and use that to pay expenses. I'd like to be able to show that money as "income" and where it came from.
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Thank you for reaching out to the Community, NonProfitBookkeeper. Let me walk you through how to transfer your funds to another account.
In QuickBooks Online, there's no option to allow direct assignment of internal income sources to projects. However, you can consider transferring the funds from your savings account to your checking account.
Here’s how to record a money transfer:
- Select + New. Then, select Transfer.
- From the Transfer Funds From the dropdown list, select the bank account that the money is coming from.
- From the Transfer Funds To dropdown list, select the bank account that the money is going to.
- In the Transfer Amount field, enter the amount.
- Edit the Date field.
- Select Save and close or Save and new to complete the transfer.
- Select Yes if you double-checked the date.
Then, create a journal entry to move the funds to an income account. Make sure to choose the correct projects in the Name column.
Furthermore, I suggest contacting an accountant for guidance in tracking the transaction and a more accurate recording.
Additionally, I've added these articles for your guidance in running reports in QuickBooks Online: Run reports in QuickBooks Online
Comment on the post if you have more concerns about recording your fund or any QuickBooks-related concerns. I'm always here to help you. Take care.
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"I'd like to be able to show that money as "income" and where it came from."
When the cash was received, it should have been recorded as income if its use was unrestricted or as equity if its use was restricted. If its use was restricted, then you make a journal entry to move the restricted funds to income: debit the restricted funds equity account and credit the appropriate income account.
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Thank you. I had figured out the Transfer part but got stuck after that.
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Thanks. This helps with the second part of the process after the transfer.