QuickTips for Nonprofits by The Accountant Beside You

pledges, prepaid pledges - December 30, 2017

Recording Prepaid Pledges in QuickBooks Desktop

Are you wondering how to record the prepaid pledges donors are sending in because of the new tax reform? In this video, I'll take you through the steps to set up a prepaid pledges account that will allow the donation to reflect on the Donor Acknowledgement letter. (Please NOTE: This is designed for management reporting purposes only; specifically religious organizations who do not need to file a tax return or a 990.) Quick Summary: Set up a new account in the Chart of Accounts called "Prepaid Pledges/Unearned Donations". It must be a Current Liability. Set up a new Item as...

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prepaid pledges, tax reform - December 30, 2017

Prepaid Pledges in QuickBooks Online

The changes in the new tax law have driven many donors to prepay their 2018 pledges. This short video explains how to handle them in QuickBooks Online. (Please NOTE: This is designed for management reporting purposes only; specifically religious organizations who do not need to file a tax return or a 990.) Quick Summary: Set up a new account in the Chart of Accounts called "Prepaid Pledges/Unearned Donations". It must be a Current Liability. Set up a new Product/Service as a Service called "Prepaid Pledges" and tie to the Prepaid Pledges/Unearned Donations account. Record the prepaid donation as a Sales...

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