QuickBooks Online for Nonprofits Accounting Guide

Optimize Quickbooks Online For Your Nonprofit!

Church and nonprofit accounting pose their own unique challenges, but QuickBooks Online for Nonprofits & Churches will guide you through the intricacies of QuickBooks online for your church accounting or nonprofit accounting. No accounting experience? No problem! Alleviate frustration and speed your bookkeeping with this easy-to-read manual for QuickBooks online.

Learn the steps needed to set up your nonprofit accounting system with these features:

• Master QuickBooks online basics specifically for your nonprofit
• Design an online nonprofits chart of accounts that will yield the reports you need,
• Track progress of your nonprofits grants and programs online
• Import information for customers, donors, and vendors to QuickBooks online
• Receive and record donations, pledges, dues, and other incoming cashflows
• Manage expenses and payroll efficiently
• Reconcile bank and credit card feeds to save time
• Configure budgets that meet your organization’s targets
• Design and run month-end and year-end reports
• Conduct fund accounting
• Handle fundraisers, mortgages, and reserve accounts
• Handle your finances conveniently from quickbooks online mobile app.

These books are written for non-accountants to understand the basics of nonprofit accounting with step-by-step instructions, loads of illustrations, and no confusing jargon. This isn’t just quickbooks for dummies—this easy-to-read, detailed guide will teach you how to look after the whole financial well-being of your church or nonprofit. Think of the book as a support manual to be referred to anytime you need  help.

If you are looking for help with QuickBooks Pro, Premier, or Non-profit versions, click here to see QuickBooks for Nonprofits & Churches A Step-By-Step Guide to the Pro, Premier, and Nonprofit Versions.

Which option is best for small nonprofits and churches? QuickBooks Online or the Pro,Premier versions?

I also have a related blog post, Which QuickBooks does my Nonprofit Need?

QuickBooks Online for Nonprofits & Churches explains the ins and outs of QuickBooks Online. If you are using QuickBooks Pro, Premier, or Nonprofit version, check out QuickBooks for Nonprofits and Churches-A Step-By-Step Guide to the Pro, Premier, & Nonprofit Versions. 

Lisa London, CPA, understands that not everyone thinks like an accountant. That’s why she started The Accountant Beside You series to assist non-accountants in untangling the financial knots that come with running a small business, church, or nonprofit organization. She walks readers through the process of setting up quickbooks from a chart of accounts custom-designed for churches, to running the reports for the year-end and preparing for an audit. Take control of your organization’s finances with The Accountant Beside You!

Contents

1. Will QuickBooks Online Work for My Organization? 1
2. QuickBooks Online vs. Desktop 3
3. Fund Accounting 5
4. Reporting Differences 6
5. Differences in Terminology 7
6. The Case for Internal Accounting Controls 8
7. Advice for the Governing Body of the Organization 8
8. Tips, Hints, and When to Let Someone Else Do It 9

1. The Layout of the Program 10
2. The Basics 10
3. Find and Correct Posted Transactions 12
4. Using Quickbooks online Help 13
5. Lists and Transaction Entry Screens 14

1. Required Information 17
2. Creating an Online Account 17
3. Exporting Existing QuickBooks Desktop Data to QuickBooks online 20
4. Account and Settings 23

1. Designing the Quickbooks Online Chart of Accounts 30
2. Numbering Structure 31
3. Naming the Accounts 34
4. Building the Chart of Accounts 35
5. System Generated Accounts 36
6. Adding New Accounts 36
7. Tracking Restricted Cash 38
8. Upload a Chart of Accounts 39
9. Enter Chart of Accounts 41
10. Editing, Deleting (Deactivating), and Merging Accounts 41
11. Beginning Balances 44

1. Using Classes 46
2. Naming of Classes 48
3. Entering Class Lists 49
4. Editing or Deleting Classes 50
5. Recording the Beginning Balance Entry 51

1. Setting up Members and Other Donors 53
2. Adding Donor Types 53
3. Adding a New Donor or Member 54
4. Grouping Donors: Parent and Sub-Donors 56
5. Viewing & Printing the Donor Contact List Report 57
6. Setting Up Vendors (The People You Pay) 58 
7. Importing Donor and Vendor List from a Spreadsheet 60
   
8. Projects 63

1. Product and service types 66
2. Setting Up New Products and Services 67

1. Accounting Controls for Receipts 70
2. Entering Donations 74
3. Entering Cash Receipts 77
4. Entering Donations from a Separate Donor Base 78
5. Dues & Pledges—Billing and Payment 79
6. Invoicing and Receipt of Restricted Funds and Grants 83
7. Miscellaneous Receipts 86
8. Pass-Through Collections 87
9. Undeposited Funds 88
10. Printing a deposit slip 90
11. Recurring Donations from Credit Cards 91

1. Cash vs. Accrual Methods 93
2. Internal Accounting Controls for Paying Bills 94
3. Controls for Electronic Payments 95
4. Entering Bills 96
5. Beginning Accounts Payable Balance 98
6. Recurring Bills 98
7. Editing and Deleting Bills 99
8. Enter Credit Card Charges 100
9. Paying Bills 101
10. Online Banking Payments 103
11. Write Checks 103
12. Handwritten Checks 106
13. Bank Drafts 106
14. Entering Expenses Paid by Credit Card Manually 107
15. Paying the Credit Card Bill 109
16. Credits Received from Vendors or on Credit Card 109

1. Entering Employees and Contractors 112
2. Using Journal Entries to Record Payroll 113
3. Entering Payroll through the Check Entry Screen 115
4. Paying the Benefit Contribution 116
5. Tracking Time for Projects 116

1. Banking 118
2. Connecting Your Accounts 120
3. The Receipts Tab 124
4. Preparing for the Bank Reconciliation 125
5. Reconciling the Bank Account 130
6. Credit Card Reconciliation 134
7. Reconciling Petty Cash 135
8. Other Reconciliations 136

1. Types of Reports 137
2. Navigating the Reports Center 138
3. Defining the Parameters and Saving Customizations 138
4. Most Useful Reports 143
5. Exporting Reports to a Spreadsheet 145
6. Other Miscellaneous Reports 147

1. The Budget Process 148
2. Entering Your Budget 149
3. Entering Budgets by Program or Grant 153
4. Budget Reports 155 

14. Month and Year-End Checklist 158
15. Reviewing Your Transactions 159
16. Allocate Fund Balances 162
17. Restricted versus Unrestricted Cash 163
18. Year-End Adjusting Entries 165
19. Board Reports 165
20. Year-End Closing 165
21. Year-End Donor Acknowledgments 166
22. Other Year-End Requirements 171

14. How Do I Account For …??? 177
1. Fundraisers 177
2. Record the Sale of Merchandise 178
3. In-Kind Donations 181
4. Record a Mortgage 182
5. A Reserve Account on the Income Statement 183
15. How Do I??? 185
1. Invite and Manage Multiple Users 185
2. Invite an Accountant 188
3. Send a Thank You from the Receipts Screen 189
4. Customize Forms 190
5. Give Feedback to QBO 192
16. What About …??? 193
1. Reports I Need for an Audit 193
2. Tax Stuff 193

14. QBO from your Mobile Device 195
15. 3rd Party Developer Apps 197