QuickBooks Desktop for Non-Earnings
It’s no secret that thousands and thousands of small enterprise house owners throughout the globe use Intuit purposes similar to QuickBooks Desktop or QuickBooks On-line to handle their funds. With its minimal studying curve, good reporting choices, and the selection of both a desktop or on-line utility, QuickBooks generally is a actual asset for almost any kind of enterprise.
However what about nonprofit organizations? Are QuickBooks purposes a sensible choice for them as effectively?
That’s a troublesome query to reply. For smaller nonprofits, each QuickBooks Desktop and QuickBooks On-line can present good monetary administration choices. Nevertheless, for bigger nonprofits that handle a number of funds, applications, or initiatives, or obtain grant funding, there are nonprofit accounting software program choices accessible that provide true fund accounting, which can be a greater match.
Why nonprofit software program is completely different
Like several enterprise, a nonprofit must carry out commonplace bookkeeping duties similar to dealing with a number of financial institution accounts and financial institution reconciliations, monitoring organizational bills, and paying distributors on a well timed foundation. However nonprofits additionally have to deposit donations and grant funds, monitor each financial and in-kind donations, present donors with tax receipts and thanks letters, and in lots of instances handle volunteers.
Listed here are just some of the ways in which for-profit and nonprofit organizations differ.
- Taxes – Whereas for-profit companies are required to pay taxes on their revenue, a nonprofit group is exempt from paying taxes on donations or grants. Nevertheless, like a for-profit enterprise, a nonprofit continues to be accountable for all federal, state, and native taxes, in addition to Social Safety and Medicare taxes.
- Revenue administration – A for-profit enterprise can put income earned into retained earnings for future use, distribute earnings to shareholders, or a mixture of the 2. Any revenue earned by a non-profit have to be reinvested again into the group’s work.
- Accountability – Whereas a for-profit enterprise is usually accountable to the house owners or shareholders, a nonprofit is accountable to its board members in addition to anybody that gives funding to the group, whether or not it’s a $5 million grant or a $50 donation.
As well as, nonprofits typically maintain fundraisers or run campaigns with the intention to fund their applications. The entire funds raised from that fundraiser or marketing campaign, in addition to any associated bills, must be dealt with individually, utilizing separate funds.
Like for-profit companies, nonprofits range in each dimension and scope. For instance, a company that sometimes is funded solely via grants may have a lot completely different accounting wants than that of a company that’s funded via public donations.
The next are just some of the areas that nonprofit organizations have to handle.
- Chart of accounts: Some of the essential parts in nonprofit software program is the flexibility to create a customized chart of accounts. For those who solely handle just a few applications or initiatives, it is a easy factor to do in any accounting software program utility. Nevertheless, in the event you’re not utilizing an utility with a versatile chart of accounts, you’ll have to create quite a few sub-accounts, making your complete course of much more complicated.
- Donations: In case your nonprofit is funded primarily via particular person donations, you will have a strategy to handle each the donation in addition to every donor. You’ll additionally want to offer donors with thanks letters and receipts.
- Grants: Many nonprofit organizations are funded by grants from numerous state and native authorities entities, or via non-public foundations. For those who obtain grants from greater than two entities, it’s sensible to have a strategy to handle every grant individually.
- Funds: Fund administration is a catchall class for foundations that obtain funding from a number of sources. For those who obtain funding from a number of sources, you’ll have to have a strategy to individually monitor exercise for every of these sources.
- Campaigns: For those who sometimes have quite a few campaigns all year long, you’ll want a strategy to monitor each revenue and bills for every marketing campaign.
Select nonprofit software program that fits your group
For smaller nonprofits, utilizing QuickBooks Desktop or QuickBooks On-line is satisfactory. For bigger nonprofits that wish to proceed utilizing QuickBooks purposes, your greatest wager is to make use of the nonprofit version of QuickBooks, which is obtainable in each QuickBooks Premier and QuickBooks Enterprise editions.
These are just a few of the nonprofit options discovered within the QuickBooks Nonprofit version.
Nonprofits want accounting software program to deposit donations and grant funds, monitor each financial and in-kind donations, present donors with tax receipts and thanks letters, and in lots of instances handle volunteers.
Create a nonprofit chart of accounts
To correctly handle a number of funds, you’ll have to have entry to a nonprofit chart of accounts. In contrast to the usual model of QuickBooks, QuickBooks Enterprise for Nonprofit Organizations features a default nonprofit-specific chart of accounts that may be simply personalized to fit your wants.
QuickBooks Enterprise chart of accounts presents flexibility for nonprofit organizations.
The default chart of accounts additionally incorporates the unified chart of accounts, making it simple to switch monetary information immediately into IRS types for simple processing and submitting.
Getting into transactions
As soon as your chart of accounts has been arrange correctly, you possibly can start to enter accounting transactions.
QuickBooks Enterprise for Nonprofits permits you to make the most of helpful options similar to digital invoicing, which permits your donors or clients to pay on-line utilizing a hyperlink that’s included within the bill. Computerized reminders will be set as much as remind donors and clients about upcoming fee due dates.
You too can create e-mail receipts for donors and clients instantly upon receiving their fee, which will also be emailed to them for added comfort.
Together with processing funds and invoicing, you possibly can monitor mileage and schedule duties and appointments. As well as, QuickBooks Enterprise simply integrates with Microsoft Workplace and contains a number of paperwork constructed utilizing Phrase templates, making it simple to offer donors and supporters with every part from a receipt for a donation, to an annual attraction letter.
QuickBooks Enterprise presents letter templates to simplify the letter preparation course of.
As well as, Enterprise additionally presents integration with Salesforce CRM, enabling you to handle your donor database with out the necessity for duplicate information entry.
A simple-to-use interface
For those who’re already conversant in QuickBooks Desktop purposes, the nonprofit version presents the identical consumer interface, that gives quick access to all duties from the workflow space.
QuickBooks Desktop contains an simply navigated consumer interface.
For those who want, you possibly can entry all system duties from the vertical menu on the left facet of the display screen. Additionally included are a collection of process icons on the menu bar on the high of the display screen.
As well as, you possibly can create a ‘Favorites’ checklist on the vertical menu bar that permits you to shortly entry ceaselessly used duties.
Each for-profit and nonprofit companies want entry to monetary statements together with different enterprise and monetary experiences. Nevertheless, a nonprofit group additionally has to current board members with a wide range of nonprofit-specific experiences which embrace the next:
- Assertion of economic place: Just like a regular steadiness sheet, the assertion of economic place shows property, liabilities, and web property whereas offering detailed info on restricted, quickly restricted, and unrestricted property. On the assertion of economic place, web property take the place of proprietor’s fairness, since a nonprofit doesn’t have house owners or traders.
- Assertion of actions: The assertion of actions is a useful report for any nonprofit, exhibiting any modifications in web property over a particular time period. The assertion of actions is much like an revenue assertion, but in addition contains each present and prior-year totals, budgeted totals, and funds variances for a selected time period. As well as, when making ready an announcement of actions, an in depth rationalization of any modifications which have occurred throughout that time period ought to at all times accompany the assertion.
- Assertion of practical bills: The assertion of practical bills supplies particulars on administrative and overhead bills, in addition to fundraising bills for every program administered by the nonprofit. This report can be used when making ready Kind 990 for the IRS.
- Money movement assertion: The money movement assertion is the one report that’s utilized in each for-profit companies and nonprofit organizations. The money movement assertion identifies and experiences on money acquired from working and funding actions in addition to money from financing actions.
All of those experiences are supplied in QuickBooks Enterprise for Nonprofits, together with different nonprofit experiences which embrace:
- Donor Report
- Grant Report
- Donor Contribution Abstract
- Funds vs. Precise by Donor
- Funds vs. Precise by Grants
- Largest Donors
- Largest Grants
Like all QuickBooks Desktop experiences, the nonprofit experiences will be considered on-screen, printed, or emailed on to recipients. This feature can come in useful when making ready board experiences for upcoming conferences or to simply hold members within the loop.
Although nonprofit organizations are exempt from taxes, they’re nonetheless required to file a tax return at year-end.
That tax return, Kind 990 can be made accessible for public inspection and can must be filed yearly to retain nonprofit standing. Although many nonprofits have their accountant or CPA put together Kind 990, having good accounting software program in place that may adequately handle nonprofit funds is a should.
The Assertion of Purposeful Bills is used when making ready Kind 990 for the IRS.
Correct budgeting is essential for any enterprise, however maybe much more essential for nonprofits. In QuickBooks Enterprise for Nonprofits, you possibly can create an annual funds from scratch, or use prior yr numbers as a great reference level. You too can import a funds from one other supply if desired.
As soon as a funds has been created you possibly can simply use included experiences such because the Funds vs. Precise to trace precise bills towards these budgeted.
To create a brand new funds, simply click on on the Set Up Budgets possibility which is positioned below Nonprofit on the primary menu. You’ll be able to create a funds on your total group or particular person accounts or lessons.
The Create a New Funds function permits you to select your most well-liked funds kind.
You’ll be able to select from both a Revenue and Loss Funds format or a Steadiness Sheet format on your nonprofit. When you select a format, you’ll additionally be capable of select any further standards you want to embrace within the funds, together with Buyer Job or Class.
In case your nonprofit is funded primarily by donations, you’ll want to have the ability to handle these donations correctly. The Enter Donations function does simply that. This function is mainly the identical because the Enter Gross sales Receipts function in common QuickBooks editions however has been revised to incorporate nonprofit-specific language.
The Donation display screen permits you to enter all the knowledge you want for any donation.
The donation display screen is the place you possibly can enter the donation quantity, description, and the way the donation was paid. For those who’re signed up for QuickBooks Funds, you can too course of donor funds made by bank card immediately from this display screen as effectively.
For monitoring functions, you’re additionally capable of connect any associated information to the donation. You’ll additionally be capable of e-mail a receipt on to your donor, with an possibility so as to add a private message immediately from the donation display screen as effectively.
In case your nonprofit usually accepts pledges from donors or constituents, you possibly can simply bill the pledge quantity from the Pledges/Bill display screen. This is identical display screen used to create invoices within the desktop model of QuickBooks, with wording up to date to raised swimsuit the wants of a nonprofit group.
The Pledge display screen is the place you possibly can course of pledges (invoices) for any pledges made.
To enter a pledge, simply enter the merchandise quantity assigned to the pledge together with an outline. Once more, you possibly can add a customized message to the pledge bill if desired.
QuickBooks Desktop Enterprise for Nonprofits vs. QuickBooks On-line
For those who’re within the course of of selecting between QuickBooks Nonprofit or QuickBooks On-line, there are some benefits to going with the desktop model. Whereas QuickBooks On-line presents the good thing about any time/anyplace entry so long as you could have an web connection, it can require extra customization to be of profit to nonprofits. For those who do go for the on-line model of QuickBooks, utilizing add-ons can provide you a extra full accounting answer. Although some further customization is obtainable in QuickBooks On-line Superior, the on-line model continues to be higher suited to for-profit companies.
Alternatively, QuickBooks Desktop’s non-profit model presents quite a few nonprofit-specific options. If pricing just isn’t a priority, forego QuickBooks Professional and go for the costlier QuickBooks Premier or QuickBooks Enterprise.