It’s simple to monitor the funds you get from donations if you manage a nonprofit organization. You can document and keep track of a contribution as a deposit or a sales receipt, depending on how you receive it. In this article, we will delve into the methods how you can track funds received from donors in QuickBooks Online.
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Steps to Track Funds You Receive from Donors in QuickBooks Online
Follow the below mentioned steps to track funds you receive from donors in QuickBooks Online:
1st Step: Creating an Account for Fund Donations
To keep track of the funding you get from contributors, You have to create an income account in your chart of accounts.
Step 1: You have to navigate to Settings and opt for Chart of Accounts.
Step 2: You have to choose New to create a new account.
Step 3: Select an account type from the Account Type menu.
Step 4: Choose the detail type that best suits the transactions you wish to track from the Detail Type selection. Study the various detail types.
Step 5: You have to provide your new account with a suitable name. In this regard, You can take the help of the detail type description to create the name that perfectly defines what you are tracking.
Step 6: You have to add a description.
Step 7: Choose Is sub-account before entering the parent account if this is a sub-account of an existing account.
Step 8: Let’s check that your QuickBooks account matches your actual bank or credit card account now. Determine the start date for your financial tracking. Enter the account’s balance and the as-of-date in the Balance column. If you want to start tracking currently, use the present day’s date.
Step 9: Once through with the process, choose Save and Close.
Step 10: You have to ensure to choose the Income for the account type. And you have to opt for the Non-Profit Income as the detail type.
Step 11: You can name this account ‘Non-profit Income’.
2nd Step: Creating the Fund Donation Item
You must choose a good or service while creating a sales receipt. You can alternatively set up a non-stock segment because you only get paid in cash.
Each time a fund gift is made, You are not required to create a new item. To monitor fund donations from several donors, You often only need one item.
Step 1: You have to opt for Products and Services under Get paid & pay.
Step 2: Choose New.
Step 3: Select Service or Non-stock.
Step 4: You have to add a name. If you want to track the SKUs, You have to provide the SKU for the product.
Step 5: Choose the category that best fits your product or service from the Category selection. Study up on item categories.
Step 6: You have to select the checkbox that specifies that you sell a particular product or service to the customers. In case you do not sell the product, you should leave it unchecked.
Step 7: You have to provide a description. This is what the customers will check on the sales form.
Step 8: The Sales price/rate field must include a value. Note: You can leave the Sales price/rate data column empty if you bill clients on an hourly basis. When filling up the invoice or sales receipt, including the price.
Step 9: Choose the account you wish to use to track the sale from the Income account selection.
Step 10: Choose tax from the Tax dropdown if you need to track sales tax. Follow the instructions to set up sales tax in QuickBooks if you can’t see this dropdown.
Step 11: Select Save and close when finished.
Step 12: You can name this item ‘Non-profit Income‘.
Step 13: You must not forget to use the income account you create in the above-mentioned steps.
3rd Step: Adding the Donor as the Customer
You have to add the donor as a customer in QuickBooks if you have not already.
4th Step: Tracking the Fund Donation
Step 1: To Acknowledge the donation, Create a sales receipt.
Step 2: Next, Pick your contribution template by clicking Customize.
Step 3: You have to fill up the receipt details. You have to ensure to opt for the donor and the donation item you set up.
Step 4: Choose how to receive the gift after selecting the Payment method selection.
Step 5: If you wish to send your donor an email acknowledging their donation, choose Save and send or Save and close.
How to Create a Bank Deposit?
You have to create a bank deposit if you wish to record the money donated to the organization.
1st Step: Keep Transactions in QuickBooks with a Bank Deposit
Put any invoice payments and sales receipts you want to combine, if you haven’t already, into the Undeposited Funds account. The account takes into consideration everything before you record a deposit.
2nd Step: Combining Transactions in QuickBooks with a Bank Deposit
In QuickBooks, Every bank deposit generates a unique record. For each of your deposit slips, make one deposit at a time.
Step 1: Choose + New.
Step 2: Choose the Bank Deposit.
Step 3: Select the account you wish to deposit the money into from the Account menu.
Step 4: For each transaction, You wish to combine, Tick the appropriate box.
Step 5: Verify that the sum of the chosen transactions matches the amount on your deposit slip. You can very well use the deposit slips as a reference.
Step 6: Choose Save and close or Save and new.
You just have to make sure that you opt for the donor and the revenue account you create for the donations.
The article highlights the methods one has to follow to track funds received from donors in QuickBooks Online. You also get to learn about the creation of a Bank Deposit.
However, If you cannot follow the steps, you should take the help of a professional QuickBooks expert. He or she will guide you through the process.
If you have further queries related to tracking funds received from donors in QuickBooks Online, you should get in touch with Dancing Numbers team via LIVE CHAT.
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+1-800-596-0806 or chat with experts.
Frequently Asked Questions (Faqs)
How to Remove a Payment from a Bank Deposit?
If you wish to remove the specific payment from the deposit, Then stick to the following steps:
Step 1: You have to navigate to Bookkeeping, Opt for Transactions, and then choose All Sales.
Step 2: Find the payment you wish to erase and then open it. The appropriate state is “Closed“.
Step 3: Uncheck the checkbox for the payment you want to remove.
Step 4: Select Save and new or Save and close.
How to Delete a Bank Deposit?
If you wish to delete a bank deposit, You have to adhere to the following steps:
Step 1: You have to navigate to Bookkeeping and opt for Chart of Accounts.
Step 2: Choose Account history after locating the bank account where you made the deposit.
Step 3: To gain additional information, Perform a search for the bank deposit and choose it.
Step 4: Decide to delete.