Welcome to QuickBooks Online for Nonprofits.
My name is Ufuoma Ogaga, I am the owner of Goshen ...
Bookkeeping & Consulting.
I am also an Advanced Certified QuickBooks ...
ProAdvisor and a financial controller serving nonprofits ...
nationwide by helping them to increase profitability one ...
mission at a time.
Today, I am going to show you how ...
to create classes and locations in QuickBooks Online.
The class feature inside of QuickBooks Online is suited ...
to track the 3 core functional expenses of a Nonprofit's ...
Form 990. Admin,
Program, and Fundraising are the ...
typical classes for a regular nonprofit.
For churches, your classes will be your fund ...
types such as General fund, Program fund,
Board designated fund, etc.
Remember, your chart of accounts tracks ...
what donations you brought into the organization and ...
what you spent the funds on. Classes on the other hand,
tracks why you the collected funds and why you spent the funds.
Let's get started with creating classes in QuickBooks Online.
To setup classes, click on the Gear Icon,
then account and settings. Click on the Advanced tab,
scroll to where it says "track classes"
and click it. Check the box next to track ...
classes to turn it on.
Check the box next to "warn me when a transaction isn't ...
assigned to a class". Keep the default option ...
under assign classes as "one to each row in transaction".
Click save and done to exit the settings screen.
To create your classes, click the Gear Icon,
under the lists column, select all lists,
then click classes.
Click new to create your classes.
I recommend adding numbers in front of your ...
classes in the order you want it to display on your reports.
Here I am creating Admin, Program,
Fundraising as my three classes.
Now that you have created your classes,
there two important rules to remember when using class ...
tracking in QuickBooks Online.
These rules are:
1. All transactions must always ...
be assigned a class when recording sales and expenses.
2. QuickBooks Online will alert ...
you with a popup window to enter a class for a transaction ...
before saving it if you forget to do so.
The second feature you need to turn on in QuickBooks ...
Online is location tracking. With the recent FASB ...
financial reporting changes for nonprofits,
you now have to track the condition of your donations in ...
a new format that is easier for the public to understand.
The new format requires you to show your Balance sheet ...
accounts in two columns that says with donor restrictions ...
and without donor restrictions.
To comply with this new format,
we are going to use location tracking inside of QuickBooks Online.
To setup locations, click on the Gear Icon,
then account and settings. Select the Advanced tab,
scroll to the categories settings section,
and check the box to turn on locations.
You can also select department or division as a ...
location type. Click save and done.
To create your locations, click on the Gear Icon,
and select All lists, click on the location type ...
name you chose earlier.
Click the New green button to create your locations.
Again, I recommend adding ...
numbers in front of your locations so that they are in ...
the correct order for your reports.
Enter only two locations called:
1.WITHOUT DONOR RESTRICTIONS and 2.WITH ...
DONOR RESTRICTIONS. Leave the remaining options ...
unchecked in the popup window,
then click save.
Some rules to keep in mind when using locations in ...
QuickBooks are: 1.
You can only assign one location to a sales form or an ...
expense form. 2.
All transactions must always be assigned a location.
3. QuickBooks Online will not ...
alert you with a popup window if you forget to assign ...
a location to a transaction.
I recommend running the profit and loss by location ...
report and the balance sheet by location report each month ...
to make sure all of your transactions are assigned to ...
a location. This is vital if you are using a ...
3rd party payroll system that integrates with QuickBooks ...
Online. You must remember to go ...
back and add the location to those transactions that were ...
imported into the system.
That is a quick tutorial on how to setup classes and ...
locations inside of QuickBooks Online.
Thank you for watching. If you have questions about ...
QuickBooks Online, you can email me,
my email address is Ufuoma@goshenbookkeepingcc.com.
Stay tuned for the next QuickBooks Online topic.