Using QuickBooks Online for Small Nonprofits & Churches



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Praise for UsingQuickBooks Online for Small Nonprofits & Churches 

“Financial accountability is critical for your organization’s success! Make it simpler with Using QuickBooks Online for Small Nonprofits by Lisa London.” 
-Jane L McIntyre Retired Executive Director, United Way Central Carolinas 

The only QuickBooks Online tutorial written specifically for nonprofit organizations.

The Accountant Beside You, Lisa London, is joined by CPA Eulica Kimber to explain how to set up a nonprofit organization in the online QuickBooks® program (QBO®). In a reader-friendly and engaging style, aided by hundreds of screenshots, they explain how to enhance QBO for your organization's needs.  

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Topics include: 

  • Sample Chart of Accounts for churches, associations, civic groups, scout troops, private schools, and other small nonprofits,
  • Procedures to guard against theft and errors,
  • Converting a desktop QuickBooks organization into QBO,
  • Tracking donor gifts and grants,  
  • Receiving money, paying bills, and tracking credit card charges,
  • Budgets and management reports, plus
  • Month-end and year-end procedures and so much more. 

For assistance with your organization’s accounting needs, join over 10,000 readers of The Accountant Beside You series. 

Lisa London, CPA, is the author of four books in The Accountant Beside You series, including the top-selling QuickBooks® for Churches & Other Religious Organizations. She has decades of experience working with businesses as well as churches and other nonprofits. 

Eulica Kimber, CPA, owns Firm Foundation Accounting Solutions in Virginia, specializing in assisting nonprofits and small businesses with their accounting needs and training. She has been an auditor for the federal government and is a Certified ProAdvisor for both the desktop and online QuickBooks programs.

Shipping costs are a flat rate of $3.95 for media mail or $7.95 for 2-3 day USPS Priority Mail, no matter how many books you purchase. E-Books have no shipping costs and are available for immediate download.

ISNI 0000 0004 5059 7909 Lisa London, Author

Table of Contents
Introduction
1. QuickBooks Online & Nonprofits
A. Will QuickBooks Online Work for My Organization?
B. QBO vs Desktop
C. Fund Accounting
D. Reporting Differences
E. Differences in Terminology
F. The Case for Internal Accounting Controls
G. Advice for the Governing Body of the Organization
H. Tips, Hints, and When to Let Someone Else Do It
2. Acquainting Yourself with QBO
3. Setting up Your Organization File
4. What is the Chart of Accounts?
5. How do I Track My Grants & Programs?
6. Donors & People I Owe Money To
7. Inputting Donors & Vendors from Files
8. Products & Services—Tracking the Transactions 
9. Money In—Recording Donations & Revenues
10. Money Out—How Do I Pay the Bills?
11. Payroll
12. Bank Feeds & Reconciliations
13. Where Do We Stand? —Designing & Running Reports 
14. Am I Meeting My Targets? Budgeting
15. It’s Month End &/or Year End—What Now? 
16. What About…??? 
A. How Do I Account For …? 
1. Fundraisers 
2. Record the Sale of Merchandise 
3. In-Kind Donations 
4. Record a Mortgage 
5. A Reserve Account on the Income Statement 
B. How Do I??? 
1. Invite and Manage Multiple Users 
2. Invite an Accountant 
3. Send a Thank You from the Receipts Screen 
4. Customize Forms 
5. Give Feedback to QBO 
C. What About …??? 
1. Reports I Need for an Audit 
2. Tax Stuff 
17. QBO Mobile and 3rd Party Apps 
Appendix 
A. Before You Start Checklist 
B. Keyboard Shortcuts for QBO 
C. Upload a Chart of Accounts 
D. Proposed Charts of Accounts 
1. For Organizations Needing a Simplified UCOA 
2. For a Religious Organization 
3. For Associations 
4. For a PTA 
5. For a Civic Club 
6. For a Boy Scout Troop 
7. For a Girl Scout Troop 
8. For a Private School 

Index

A
account list 15, 38, 40,
accountantbesideyou.com 1, 7, 10, 21, 33, 51, 111, 171, 176, 205, 207, 237
accounting controls 1, 7, 9, 69, 91
for paying bills 91
for receipts 69
procedures 7
accounting year 7, 17, 41, 48, 81, 202
accounts
account list 15, 38, 40
account type 30, 36, 39, 105, 130, 182, 207, 215, 220, 225, 227, 230, 232, 234
add new account 35
beginning balances 41
delete account 399
design a chart of accounts 29
download 38
edit accounts 38
make inactive 39
naming 33
parent 36, 37, 38, 39, 40, 125, 133, 135, 176
subaccount 36, 37, 38, 39, 40, 43, 88, 110, 125, 133, 134, 135, 158, 160, 176, 216, 217
upload 205
accounts payable reports 142
accounts payable (see also:bills) 30, 39, 42, 49, 96, 123, 142, 159, 193, 199, 208, 216, 221, 225
accounts receivables (see also: donations, dues) 30, 36, 39, 42, 44, 49, 142, 157, 193, 207, 215, 220, 225
accrual method of accounting 26, 91, 96
cash vs accrual methods 91
accumulated depreciation 48, 202, 208, 215, 221
accumulated profit 6
administrator’s password 164
American Society of Association Executives (ASAE) 33, 220
apps 194
Bills.com 93, 199
Method:Donor 199

ask my accountant 31, 214, 219, 224, 229, 231, 233, 236
audit
adjusting entries 163
annual 6, 9, 176
audit committee/s 1, 9
audit trail 89, 122, 123
reports193
automatic drafts 115, 124
B
backup 3, 4, 20
bank
accounting controls 1, 7, 9, 69, 91
charges 125, 212
drafts 25, 104, 111, 155
deposits 85, 87, 88, 115, 127, 183
online banking 100, 114, 118, 155
reconciliation 89, 118, 120, 127, 128, 142
remote imaging device (RID) 71, 72, 86, 87
returned checks 120, 121
transfer funds 119, 186
undeposited funds 74, 86, 115, 120, 124, 127, 157, 163, 207, 215, 225
beginning balance/s 30, 36, 41, 42, 47, 48, 49, 81, 96, 109, 127
balance equity 30, 209, 222, 225, 227, 230, 232, 234
beginning balance journal entry 41
bills 91
bills.com 93, 199
bills entry 93
credit card account 104, 106
credits 106
edit 97
memorize 104
online payments 100
pay bills 98
preferences (see also:settings) 23
recurring bills 96
bookkeeper 4, 15, 69, 70, 88, 92, 104, 118, 128, 165, 188
budget
by account 145
by grant 149
by program 149
process 143
proposal 144
reports 151
C
camps 231
capital campaign 6, 30, 31, 64, 219
cash
restricted 37, 38, 110, 160, 163
unrestricted 37, 38, 160
cash basis option 134
cash method 26, 91
cash receipts 15, 77
cash-flow 95, 142
chart of accounts (see:accounts)
check register 123, 124
check signer/s 70, 72, 92, 93
checking account (see:bank)
checklist 154, 155, 201, 202
Church Accounting: The How-To Guide for Small & Growing Churches 102, 109, 171, 180
civic club accounts 33, 201, 227
classes
add new 46
list 46
names 45
edit/delete 47
parent class 47
sub-classes 45, 46, 47, 49, 86
vs. account numbers 45
vs. items 68
closing date 155, 157, 164
COGS (cost of goods sold) 178, 179
column width 139
credit card
account 3, 25, 30, 53, 72, 74, 89, 90, 104, 105, 106, 107, 111, 112, 113, 117, 129, 130, 155, 159, 186, 202, 208, 212, 216, 218, 219, 221, 225, 227, 230, 232, 234
charges 105,
processors72
receipts 89
paying 106reconciliation 129
recurring donations 89
CSV (comma separated values) 61
current asset 30, 31, 39, 207, 208, 215, 220, 221, 225, 227, 230, 232, 234
current liability/ies 30, 39, 208, 209, 216, 221, 225, 227, 230, 232, 234
custom reports 37, 132, 137
customers
add new member 50
attach files 83,
donor contact list report 54
grant/s 7, 8, 24, 29, 42, 64, 68, 83, 91, 92, 95, 110, 135, 147, 186, 202, 207, 219, 226
importing donor and vendor list 61
naming protocol 33, 45
parent donor 53
sub-donor 53
D
deposit (see:bank)
donations 69
accounting controls for receipts69
acknowledge receipt 75
by members 53
vs. foundation grants 53
entering cash receipts 77
entering checks received 73
entering dues 79
in-kind 179, 180, 217
miscellaneous receipts 84
pass-through 86
recurring dues 80, 89
restricted donation 83
website 72
donor acknowledgment/s 164, 165, 171
donor thank-you 75, 164
donors 4, 7, 24, 28, 50, 58, 70, 77, 138, 164, 189, 195, 216
download
a chart of accounts file 34, 205, 207
credit card charges 104, 129
IRS publication 598 193
invoice template 113
E
email a donor 188
entering donations 72
expand button 133, 134
exporting QuickBooks data to QBO 19
expense-reporting 32
exporting reports 140, 141, 145, 163
F
financial statement/s (see also: reports) 4, 6, 9, 26, 44, 67, 68, 72, 85, 91, 93, 95, 154, 176, 202
Firm Foundations Accounting 1
fiscal year 20, 26, 81, 147, 164
forecasts 142
fraud 9, 91
fund accounting 5, 6, 36, 37
fund balance/s 44, 49, 154, 155, 159, 216
fund class/es 44, 45, 49, 75
fundraiser/s 31, 70, 84, 85, 166, 176, 177, 212, 216, 222, 226, 228, 230, 231, 232, 235
G
general support 6
gift cards 129, 130, 207, 215, 220
Girl Scout Troop 201, 231
grants (see also:jobs) 7, 24, 29, 42, 64, 68, 83, 91, 95, 110, 135, 147, 149, 151, 186, 202, 207, 219, 220, 226, 228

H
handbook 9
handwritten checks 103
170
hide
header 139
inactive accounts 39, 40, 47
transactions 126
historical data 22, 149home screen 12, 15, 20, 21, 22, 61, 62, 63
hovering your mouse 139

I
import
contacts from email 58
contacts through spreadsheet 50, 61
from donor base 78
in-kind donations 179, 180, 217
income (see: donations)
independent contractor/s 32, 102, 171
inflation 145
inputting donors using a spreadsheet 61
instructions on uploading the file 205
insufficient funds 118
internal accounting controls (see: accounting controls)
internet-based donor record systems 78
inventory 3, 32, 64, 177, 178, 179, 208, 210, 211, 215
invoice/s (see also: pledges, dues)
IRS forms and publications 32, 57, 102, 138, 175, 193
items
add new 66
category 67
on a bill 95
pass-through donations 86, 219
service item 66, 86, 181
types 64

J
journal entries (see also:general journal entries) 6, 36, 41, 42, 48, 89, 109, 110, 111, 130, 158, 159, 163, 180, 186
beginning balance entry 41, 47
to record payroll 109
year-end adjusting entries 163
K
keyboard shortcuts 12, 201, 203
Kimber, Eulica 1, 2, 4, 7, 11, 22, 29, 51, 108, 109, 112, 193, 199, 200, 237
L
labels 7, 11, 58, 142, 195, 222

liabilities (see: accounts payable(see also bills)
limitations of QuickBooks/QBO 1, 7, 37, 138
loan/s 31, 181, 202, 209, 213, 219
login/s 22, 93, 184
logo 18, 23, 114, 141, 190
long-term assets and liabilities 30, 31, 181
M
manual checks (see: handwritten checks)
mapping data fields 62, 206
mapping to a tax line 44
members (see also:donors)
dues 6, 25, 31, 36, 53, 64, 79, 96, 115, 120, 131, 141, 143, 155, 164, 191, 202, 207, 210
memorize 104, 137
merchandise sales 177
Method:Donor 199
mobile app 4, 195
Montessori 234
month & year-end checklist 154, 155
multiple users 4, 184
N
naming protocol 33, 45, 153
non-operating income and expenses 1, 140, 143, 219
non-restricted money 37, 159, 163
numbering structure 29, 33
O
online accounts (see:bank - online banking)
opening balance/s 36, 53, 57, 62, 209, 216, 222, 225, 227, 230, 232, 234
P
pass-through collections 86, 219
password/s 9, 18, 22, 72, 93, 114, 164, 187, 194
payee/s 15, 92, 99, 102, 105, 115, 117, 120
paying bills online 93
paying sales taxes 193
payment screen 82, 84, 89
PayPal 72, 112, 113, 199
payroll
entering through the write checks screen 111
liabilities 39, 155, 208, 216, 221
service 39, 155, 208, 216, 221
withholdings 111
recording using a journal entry 109
petty cash 129, 130, 157, 207, 215, 220, 225, 227, 230, 232, 234
pledges (see:donations)
preferences (see also:settings)
billing and subscription 24
company 23, 177
payment/s 11, 25, 26, 32, 37, 52, 64, 69, 93, 99, 112, 118, 121, 124, 155, 165, 171, 192, 199, 204, 212, 214, 218, 233
Premier version of QuickBooks
prepaid assets
credit cards 130
insurance 31, 39, 158, 215
postage 31, 130, 215
preview 76, 99, 100, 103, 171, 190, 192print
1099s 171
check/s 3, 99, 100, 103, 186
mailing labels 58, 142, 222
Proadvisor 1, 15, 21, 138
programs (see: classes)
PTA 33, 201, 225
Q
QBO apps 194, 198
QBO mobile 193, 194, 195, 197, 199
QBO versions 174
QBO vs desktop 4
Quarterly reports 43
Quickbooks payroll 108
Quickbooks support 3

R
receipts (see:donations)
reconciliation/s 37, 89, 112, 118, 120, 124, 126, 127, 128, 129, 130, 142, 157
reimbursable expenses 95
reimbursements 103, 226, 229
reissue 123
Reports center 132, 137, 157
reports
designing & running 131
expand or collapse 133, 134,
most useful 137
statement of activities 7, 8, 131, 138, 155
statement of financial position 7, 8, 131, 138, 155, 156, 163
statement of functional expenses 32
types of 131
required information 17, 18
reserve account 182, 214
restore 4
restricted fund/s 6, 43, 45, 49, 82, 83, 216
restricted versus unrestricted cash 37, 44, 160
returned checks 120, 121
RID (see:scanner)
S
sales receipts (see:donations)
sales taxes 52, 64, 179, 193, 215
scanner (RID) 71, 72, 86, 87
scout/ing 33 201, 229, 231
self-duplicating receipt book 70
settings
advanced 26
billing and subscription 24
company 23
expenses 26
payments 26
sales 25
spreadsheets 140
T
tax return 17, 27, 29, 32, 43
Techsoup.org 2, 18
templates 25, 61, 62, 63, 81, 96, 97, 188, 189
temporarily restricted class 82, 236
temporarily restricted funds 45, 216
thank you 170, 188, 199
time sheets 186
transfer/s 22, 38, 72, 117, 118, 119, 120, 126, 182, 183, 186, 214, 216, 218, 219
trips 43, 231, 233
U
UCOA (Unified Chart of Accounts) 29, 33, 201, 207


undeposited funds 74, 86, 87, 89, 115, 120, 124, 127, 157, 163, 207, 215, 225, 227, 230, 232, 234
unrelated business income 193, 212
unrestricted cash 37, 38, 160
unrestricted funds 44, 45, 49, 75, 159
uploading a file into QuickBooks 18, 34, 58, 61, 205
V
vendor center 94, 95, 104
vendors
adding 12, 56
credits received 106, 155
importing from spreadsheet 61
bill payment 98
checks 101
volunteer hours 64
W
W-2 wage-and-tax-statement 108, 155, 175
write checks 94, 101, 115, 124, 126, 129, 186
Y
year end 1, 7, 57, 108, 138, 154, 155, 158, 160, 163, 164, 171