We are using QB Desktop Premiere NonProfit Edition.
We are a registered charity in Canada. We collect no GST, and we qualify for a 50% return of all GST paid on our expenses over a fiscal year.
When I run the QB's Balance Sheet Detail report for our last fiscal year, under the section:
LIABILITIES -> Current Liabilities -> Other Current Liabilities we have an amount of -17,387.14.
This amount also seems to be messing with our overall Retained Earnings number.
My question is 2-fold:
1. How do I properly clear this -17,387.14 amount from Liabilities and Retained Earnings? (I have recorded past GST refund amounts simply as DEPOSITS but can DELETE these transactions if necessary)?
2. For any new transactions, can QB's record that we paid 5% GST, but have a credit of 2.5% GST?
For the last several years we mistakenly had the following preference configured incorrectly:
Edit -> Preferences -> Sales Tax -> Company Preferences -> Do you charge Sales Tax = YES.
I have recently changed that to NO.
Thank you for any help!!
It's great to hear that you've been using QuickBooks Desktop Non-Profit edition to manage your charity's books. I know there are some key details and configurations when it comes to the accounting side of charity bookkeeping and I want to make sure you get this right.
Because of that and the details you've mentioned above, I recommend touching base with an accountant, in particular one who's familiar with QuickBooks Desktop. That way, you can get the proper professional advice from someone who knows how to navigate the software.
If you're not already connected with such a person, check out our Find an Accountant page. Here, you can find a list of accountants called ProAdvisors. These are accountants who've taken QuickBooks Certification courses and are ready to help you with your books. Simply type your city or postal code into the appropriate field and click Find a ProAdvisor. You can filter and search through the options to see the listings.
I hope that helps! Enjoy your weekend.
Hi there. Thanks for your reply.
Suggesting to a charity, the answer to our problem is to hire an expensive certified Accountant really isn't all that helpful.
Is our situation really the peculiar? Our Quickbooks edition has sat basically with default configuration. We don't collect GST - so why would QB's be reporting a NEGATIVE Liability? Seems odd. There has to be a relatively simple "accounting practice appropriate" way to wipe this off the balance sheet.
I hear what you're saying and I know that charities have to be mindful of how their funds are used. As a QuickBooks Team member, I'm able to offer technical support, however, I'm not training in accounting practices. QuickBooks Desktop as a program is also useful for managing your books, but it doesn't hurt to have an accountant on your side.
It's important to me that these details are right, which is why an accountant with charitable organization experience would be the best resource in this instance. Not only will they be able to look at your books with you and explain your numbers, they'll be able to guide you with the special care needed for charitable organizations.
I'm here if you need more clarification.