Thanks for following along with the thread and sharing your concerns, @grthomp11.
Quickbooks Online offers Fund Accounting solutions for non profits. Fund Accounting is an accounting method used by non-profits in which funds are allocated to expenses before the money is actually spent. When the fund is empty, the accounting system doesn't allow any more spending against the fund.
When using Fund Accounting in QuickBooks Online, you can use Class tracking and banking sub-accounts to track individual funds. I'm including some steps to walk you through the process below.
First, you'll need to turn on class tracking, then add a new class for each fund. Here's how:
- Go to the Gear Icon, then select All lists.
- Click on Classes.
- Hit New, then enter the name of a fund in the Name field.
- Select Save.
Repeat these steps for each of the funds you need to track.
When you enter fund transactions, you can now select the appropriate fund in the Class field for the income or expense line affected.
Once you've added your classes, you're ready to track multiple funds with bank sub accounts.
To explain, if you have multiple funds, you can have the total for all the funds recorded to a single bank account on your Chart of Accounts, but have multiple sub-accounts to track individual funds.
You can set up a different sub-account for each fund to track. Every transaction you link to one of the sub-accounts you create is reflected in the parent account.
To set up sub-accounts:
- Go to Transactions, then Chart of accounts.
- Select New and do one of the following depending on which panel you see.
Once everything has been set up, you can run a profit and loss by class report to review the fund income and expenses.
For additional information about this process, check out Fund Accounting for non profits in QuickBooks Online.
Please keep in mind it is always best to discuss any changes to your account with your accounting professional before hand. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center.
Please let me know if there is anything else that I can assist you with. Take care!
