Webinar – QuickBooks (Desktop) for Existing Nonprofits – 2017-03-22

Becky: Welcome, everyone, for “QuickBooks
Desktop for Existing Nonprofit Users.” Thank you, all, for joining us
for today’s TechSoup webinar! Before we get started, we want to make sure
everyone is comfortable using ReadyTalk, the webinar platform we’re using today.
So go ahead and chat in at any time using the box on the lower, left side
of your screen, if you have any questions or need any technical assistance.
You don’t need to raise your hand. We’re here to answer your questions any
time you chat them in or to flag them for our presenters. We’ll do
our best to keep up with them. We also keep all of our lines muted so that we
can get a clear recording for us to refer to later. If you lose your internet connection,
please click that green “Join Meeting” button in your confirmation or reminder emails that
you would have received when registering. If you lose your phone connection, for those
of you who are dialed in, you can dial back in at any time. Susan has just
chatted that number out. But most of you are going to be hearing the
audio play through your computer speakers. So if you have any issues with that audio
stream or if you are hearing an echo on the line, you may be logged in more than once. If the
slides or the screen sharing falls out of sync with the audio, feel free to dial
in with that alternate phone number. We are recording today’s webinar, and you’ll
be able to find it along with upcoming webinars and past webinar archives
on the TechSoup website at techsoup.org/community/events-webinars.
You’ll also be able to find it on our YouTube channel at TechSoupVideo. Within
a few days, you will get a follow-up email from me that includes the full presentation, the
recording, and any links that we discuss today. You can tweet with us @TechSoup
or with the hashtag #tswebinars. My name is Becky Wiegand and I’m the
webinar program manager here at TechSoup, and I’m happy to be your host for today’s
event. The expert that will be joining us today, whom many of you may already be familiar with
from attending prior events, is Gregg Bossen, who is a practicing CPA and Advanced
Certified QuickBooks ProAdvisor with a full service accounting firm
in Atlanta, Georgia. He is the founder of QuickBooks Made Easy and
CEO of QuickBooks Made Easy, one of TechSoup’s partners, and he offers
one of his products through TechSoup’s catalog to nonprofits. Since 2000, he has traveled
around the country teaching QuickBooks seminars in person and also through webinars
like today’s. Those are designed specifically for the nonprofit sector. So we’re
really glad to have him on the line. You’ll see in the chat a variety of people who
will be here to help as much as they’re able during this next 90 minutes of today’s
webinar. We will have Debra Kilsheimer from Behind the Scenes Financial
Services; Megan Tarnow from Mobius Group; they’re both QuickBooks Pro Advisors that
will be on-hand to help answer your questions; David Webb and Keity Ledbetter-Burch
from QuickBooks Made Easy; and Susan Hope Bard from TechSoup. We are joining you from our TechSoup
headquarters here in San Francisco, and we have Gregg and David over in
Atlanta. Go ahead and chat in to let us know from where you’re joining us today. If
you’re joining us from inside the U.S., the donation and discount programs we’ll talk
about a little bit later will be available to you in the United States. If you’re joining
us from outside the United States, we recommend checking out TechSoup.Global
and choosing your country from the dropdown so that you can see what’s available to your
organization wherever you are in the world. And right now we have 630 people on the
line with that number continuing to climb. So keep in mind that while we’ll do our best
to answer as many questions as we can today, it is only 90 minutes, and we’re not going to
be able to get into the nitty-gritty details of every question about your scenario
with QuickBooks. We’ll do our best, but we can’t promise to answer
everything in this 90 minutes. Looking at our agenda for today, we’ll do
a quick review of where to get QuickBooks and QuickBooks Made Easy. We’ll talk about
the best practices for setting up your lists, and then Greg is going to show us
live, onscreen, how to enter your income and expenses. He’ll try to quickly cover auto
allocating expenses, coming up with the reports for your board, tracking restricted
grants, inputting in-kind gifts, and we’ll do our best to
answer some of your questions. This is 90 minutes, so we’ll do our best to
cover all of this, but it is going to be a lot. We will move quickly, and don’t worry, you’ll get
the recording, so if there’s anything you missed, you’ll be able to watch it again later. Before
we get started with Gregg’s presentation, the Intuit Donation Program – Intuit
is the company that makes QuickBooks, and they make the following available for donation
to eligible nonprofits and public libraries with an annual operating budget of $10 million or
less that are not working in political, legislative, or advocacy areas of the sector. So keep
that in mind. Most of you, hopefully, have already begun using QuickBooks and are
existing users as is the title of today’s event. If you’re brand new to QuickBooks, we
really recommend checking out the webinar that Gregg did for us a couple of weeks ago, and
we’ll include that in the follow-up email as well. But before we get started with that, I’d like
to have Gregg go ahead and introduce himself and QuickBooks Made Easy, and
then we’ll get into this live demo. Gregg: Ok. Cool. Hey, everybody. I am Gregg.
Say, “Hello,” back. Say, “Hi,” if you heard me. I want to make sure there’s – It looks like
there’s a few people that have lost sound, so you might want to – Oh, good. Most people
haven’t. We’ve got 670 people on the line, by the way. Anyway, I am
Gregg Bossen. How’s it goin’? I’m an Advanced QuickBooks ProAdvisor.
I teach QuickBooks all over the country. I own an accounting firm here in Atlanta, Georgia
where I’m from, and then I also teach people how to use QuickBooks.
Specifically, I teach nonprofits. I do this in three ways. I have training products
that we are going to, actually, offer you, one of our training products. The training
products are down here, the little picture down here on the bottom right. They’re DVDs
with handbooks. One of them, the basic one, is at the TechSoup website for sale, and
then we’re going to offer you the other one, which is called Beyond the Essentials, at a
pretty big discount. We also do tech support, which we’re going to offer that to you,
in case you want to continue to get help with QuickBooks after the webinar. Then
we do live seminars across the country. This is, actually, where we are going
next year. There will be a few more, but this is most of them. As you can see,
we’re still booking out the regular times. We do a lot of stuff in the fall,
but that’s what we have booked so far. And you can go to QuickBooksMadeEasy.com
to find out where we are and sign up for a live seminar, but first you gotta
figure out whether or not I’m any good, right? Let’s see. I’m going to go over
here. What is QuickBooks for is something that I always like to start
with. Just in case you don’t understand it – I think most of you do – it’s a financial
accounting package. It’s a software package that is for accounting, but it’ll also track
your receivables; it’ll track your payables; it’ll do your payroll; and it’ll process credit
cards. Now, the payroll and the credit card thing – gotta pay Intuit an extra fee for that, but just
so that you know, it does all of those things. And it’ll also function as a good light
donor database. You can get donor reports. You can get year-end donor letters out of it,
and I’m actually going to show you how to do that a little bit today when we get into how to
enter your income. But before we go any further, let’s see. I think we have a poll
here. Becky, is the poll showing? Becky: Yep. It’s showing up, so go ahead
and click one of those radio buttons on the screen that most applies to you.
Were you in the webinar two weeks ago, and you’re coming back today?
Did you only sign up for today’s because you aren’t a beginner? You
didn’t need that first new user webinar that we did just a couple weeks ago. Maybe you
were here last time, but you were medicated, and you don’t remember anything, or
something else. Comment in the chat if you have a different experience than
these. And this is just to help us get an idea of who already has gone through some
of Gregg’s training here, recently. If you haven’t, and you’re a new user, we
do really recommend looking at that webinar from two weeks ago. We’ll include that
in the follow-up email because today’s is not for brand-new beginners. This is, really,
geared toward people who are existing users and already have their nonprofit
account set up in QuickBooks. Let’s go ahead and show the results,
and we can move on to the next question. So 73% signed up for today’s only,
and 23% came a couple of weeks ago. So hopefully, the folks who are here
are here because they are existing users, and they are already using a QuickBooks
product. So go ahead and let us know which product you’re currently using
because this also helps kind of inform us on if you’re using QuickBooks
Online or QuickBooks for Mac. We did try to make it clear in the
description that we will be showing today on QuickBooks Premier, which is the desktop,
installed version. So it will look different to you if you’re using QuickBooks Online or
QuickBooks for Mac. Some of the details may be different, but some of the overall
principles Gregg covers may be useful. So you can choose to stick around, but
just know we won’t be spending a lot of time trying to show what QuickBooks Online or
any of the other products look like today. It looks like the majority of the people on
are QuickBooks Premier or QuickBooks Pro users, which is good, and then a small
chunk are not using QuickBooks yet, so maybe they just want to see what it
looks like. I think that’s all we have. Gregg: I’m going to go ahead and skip. Becky: Yep. Let’s go ahead and move forward
with the presentation and get it started. Gregg: The second one is what most of you
use: QuickBooks Premier Nonprofit Edition. This is a desktop program, and this is the
one that you can get through TechSoup at $50, and that’s the one that you should probably
get. So if you are not using QuickBooks, the few of you — I think there’s 17 of you that
aren’t — that’s probably where you want to go to get it. QuickBooks Pro and
QuickBooks Premier Nonprofit Edition are basically the same program.
Enterprise Solutions, that’s a program for very large nonprofits, but it’s,
basically, the same program as well, so the screens are going to look identical.
I think that’s all I need to say about that. The next thing that I want
to cover is – Let me see here. Alright. There we go. Alright. As Becky was
saying, we did a class a couple of weeks ago about how to set up lists, and it looks
like a number of you weren’t here last week, which is fine, two weeks ago. But I do want
to tell you, just to kinda get you oriented, that – and I’ll just say it this
way – in QuickBooks there’s a couple of different categories of stuff: there’s
lists and then there’s transactions. And if you want to get good reports out of
the software, which is why you’re all here, a lot of the reason why people can’t get good
reports even if they’ve been using QuickBooks a while is because you haven’t set up the lists
correctly. So this is actually what we went over a couple of weeks ago, but I just kind
of wanted to put it on the screen here. The two that I really want to
focus on are accounts and classes. I think what I’m going to do is I’m
going to go ahead and share my screen so that I can give you a good idea of how
you should set up your books, real quickly. We already covered this a couple of
weeks ago. What you should be seeing now is my QuickBooks desktop. Can everybody see
that? I know I can’t hear you, but Becky, is that what I’m sharing right now? Becky: Yep. It looks good. I’m seeing
it on my screen without any problems. Gregg: Alright. Awesome. The deal is
the first two, the accounts and classes, now I’m kind of assuming you already
know this because you weren’t here a couple of weeks ago, but in case you
haven’t, let me just go ahead and say it. QuickBooks has two lists that are very
important: one of them is the Chart of Accounts List, and the other one is the Class List,
and it’s very important that these two lists are set up correctly. If they aren’t set up
correctly, you’re not going to get good reports. Now, this list right here, which is the Class
List, this is where you want to put your programs, and then you also want to put one for
Admin and another one for Fundraising. You see, nonprofits have to break
their expenses up into Program, Admin, and Fundraising, and QuickBooks
uses the Class List, or they suggest you use the Class List, to track this.
So everybody who’s listening to me should have at least three classes:
one for Admin, one for Fundraising, and then one for each one of your programs.
In this organization called Synergy Now, we have three programs: the Guidance Center,
Synergy Conference, and The Aware Campaign, so we have a total of five classes, but
you’ll at least have three. The benefit of this is that when you enter expenses and
income – and I’m going to go ahead and open up a check here, and I
realize that some of your screens might be moving a little slow, so I’m
going to be kind of patient. Let me know if I’m moving too fast — When you enter an
expense, here’s where you put the account that it relates to, and your account should
be what I call the natural categories. You should not be putting the names of
your programs in the Chart of Accounts List. These should be natural categories:
salaries, health insurance, rent. We should all pretty much have the
same expense categories. I say natural because that’s the way people think of
expenses. If you were just to run out into the street and ask somebody some
names of expenses, this is the kind of stuff they’d come up with. I guess it depends
upon what street you’re running down, but you get the idea. I’m going to
click Postage here, and then over here you can put what program it relates to. And
by the way, if you’re a theater or something, these programs might be your shows for the
year, the five shows that you do each year. We enter expenses and point them to classes.
We also point our incomes to classes: Program, Admin, or Fundraising. The benefit
is that we can get this really neat report. I’m gonna open up the report here. What you
get to see when you run a Profit & Loss by Class is a beautiful report that gives you a P&L,
but it has columns for each one of your programs with an additional two for Admin and
Fundraising, and this allows you to see, first of all, which programs are paying
for themselves. The Go-Green Guidance Center is making $24,000. The Synergy Conference
is making $22,000. The Awareness Campaign is losing money. So it tells
you how your programs are doing because you put all the expenses related to a
program and all the income related to a program to that program, but then it also
tells you how much of your expenses are Program, Admin, and Fundraising.
Most nonprofits, you want to keep your program expenses at least 75%
of the total, the total expenses. Most funders are looking
for that as a benchmark. One of the things we’re actually going
to teach today, which is something – Again, I’m assuming you’ve
been using QuickBooks already because this was for existing users, but as I
just pointed out before, here we’ll do Postage and we’ll point it to a class. Some expenses
don’t go specifically for an individual program; maybe they should be split between classes.
We’re going to show you a little tool that’s going to help you learn how to actually
get QuickBooks to auto allocate expenses to different programs based on percentages that
you put in. It’s pretty an advanced technique. It’s in our Beyond the Essentials
training product, but I’m going to teach it for you live here in a little bit. That’s basically
the setup, and I could spend two hours on it, but I just kinda wanted to get you the overall
lay of the land. One thing I do want to point out is every, single expense should be pointed
to a class, and every, single piece of income should be pointed to a class as well. If you’ll
notice, all of the income that I have pointed to the Guidance Center, that’s income
that was related to the Guidance Center. Either it was a grant that was for the
Guidance Center, or it’s membership dues to get into the Guidance Center
or maybe workshop fees, whatever. Anything that you get in income that
isn’t related to a program at all, you want to put in the Fundraising
class. Don’t put it in the Programs class. Even though you might be using unrestricted
revenues, like unrestricted donations, to pay for a program that’s costing you money,
you still want to have it in Fundraising, so you can really see which
programs are carrying their own load. As you can see, I’m going to scroll down
here to the bottom, that The Aware Campaign is losing money. So that’s something
you can take to a funder and say, “Hey, I need to raise some money for this,” even
though you know that the unrestricted donations are carrying this load. I’m going to stop.
I’m going to take a couple of quick questions, and then we’re going to move on to how to
enter income. Becky, why don’t you give us a question or two that
everybody can listen to? Becky: Sure. We have some people
asking about, what’s the difference between writing checks in the
Vendor > Enter Bills section versus Banking > Write Checks section? Gregg: I’m going to tell you the difference
between entering bills and writing a check today, so we’ll get into that. First we’re going to
do income, then we’re going to do expenses, and I’ll teach you that in a little
bit. What else? We’ll do one more. Becky: Somebody was asking about
where to find the Class List. Is it under Lists, or
is it somewhere else? Gregg: Sure. Good question. If you
don’t know where the Class List is, it’s going to be under Lists > Class List.
If, when you go here this list isn’t here, you’ll need to turn it on. To turn it on, you’ll
go to the Edit menu, and you’re going to click on Preferences, and I’m trying to go kind
of slow. Preferences are little features you can turn on or off in the
program. And there are so many of them they’re broken up into these different categories.
I’m looking at the Desktop View Preferences. If I click on Checking, I’ll see those
preferences. To turn on the Class List, we go to the Accounting category.
You see there’s two tabs up here? There’s the My Preferences
and the Company Preferences. You click on the Company Preferences,
and then this little box here that says “Use class tracking,” check this box,
and then click OK. When you do that, when you go to the Lists it’ll
appear. I think that’s it for that. You know, we just dove right in, Becky.
Usually I like to babble around and play, but we just dove right in. Is that
ok with everybody? Is everybody cool? I want to make sure
everybody is ok that – Becky: Yeah. We’re answering a
lot of questions on the back end, thanks to a couple of folks who are churning
away, so let’s go ahead and move forward. I know there’s a lot of questions
in the queue, and just remember, you don’t need to raise your
hand. Just go ahead and chat to us when you’ve got questions. Gregg: One more thing about the questions
I will say is some of you get very detailed with your questions. Just understand, we’ve got
– I think there’s over 700 people on the call now, so if your question is not general, and
it’s a detailed, specific question for you, we may not be able to get to it during
the 90 minutes, but we can talk about how you can get all your
questions answered later on. Let’s talk about how to enter income.
If you haven’t been listening to me now because you’ve been playing with the
chat, you need to stop and listen to me because this is really important. Plus, I’m
just kind of an insecure person in general. There are two ways to enter income
in QuickBooks. One way is called the lump-by-category method. I’m not going
to go in the slides, I’m just going to stick in the software. This one is called the
lump-by- category method, and you will use it if you are using an outside-of-QuickBooks
database to track your members, your donors, or your students. So go ahead and chat
the name of a donor base, if you’re using – and I know most of you aren’t – but if you’re
using a donor base outside of QuickBooks, go ahead and chat it, and I’ll have Becky
read to me because I’m always kind of curious to see what people are using. Some
common ones are GiftWorks, DonorPerfect, eTapestry, SalesForce.
What do we got there, Becky? Becky: Yep. Lots of the ones you mentioned:
DonorPerfect, Bloomerang, eTapestry, NeonCRM, SalesForce. So some
folks are using full-on CRMs. GivingFire, EDM, Servant Keeper, that’s
one specifically for a church community, lots of different options. Shepherd’s Staff,
that’s another one for the church community or religious community. Gregg: I love the Servant Keeper one. That
makes me laugh every time I hear it. Alright. Record Deposits – Those of you with
an outside- of-QuickBooks database, I am going to make an assumption, and
that is that that software doesn’t import or sync into QuickBooks, so you gotta enter
it manually. I know that some of them purport to do that; very few of them actually do it
well. Neon is one that possible does it well, but very few people use the import because one
of the things that I’ll point it out to you, it’s very important that it import class, and
a lot of these outside-of-QuickBooks databases don’t do that. So most people that
use an outside-of-QuickBooks database, they’re tracking their invoices in there, but
there’s some you've gotta get the information into QuickBooks. So how do you do that?
You use the lump-by-category method. Listen up so you don’t get confused.
I want everybody listening to me. What I’m about to show you is only
for those of you that are using an outside-of-QuickBooks database, and
it doesn’t import, but you gotta enter it in somehow. It’s called the lump-by-category
method. I’m going to click the Record Deposit window when it’s time to go to the
bank because I’m doing any invoicing in the other software package. It’s just
I’m telling QuickBooks when I go to the bank or when a deposit hits the bank from the
credit card. I’m going to click Record Deposit, and I’m going to enter my deposits, but
I’m going to enter them lumped by category. When I say, “lumped by category,” I mean
lump by income account. So you’ll go here, and you’ll say, “You know, we got a few
checks for membership dues, four of them." But I’m not going to enter all four of them
because they’re already in the other database, and if I enter them over again here, I’m double
working. So I’m going to lump it by category. The total of the checks was $425.
I still have to point it to a class. Every transaction has to be pointed to
a class. We’ll say these membership dues are memberships to get into the
Guidance Center are the cheaper price, so we’ll put it there. Then let’s say that we
have a foundation grant, and that grant is $10,000. We’ll say that it was for the Synergy
Conference, so we’ll put it there. Then let’s say we have some
individual contributions. We’ll say these individual contributions
didn’t go to a program; they’re unrestricted. The total of them is $1,295. You make sure this
equals the amount that’s deposited in the bank. What class should I point this to? I’m
testing you. I told you a minute ago. Where do I put unrestricted contributions?
What class should I point them to? Becky? Becky: Fundraising. Gregg: There you go. Fundraising is the answer.
Again, you don’t want to point it to a program if it’s unrestricted. That way when you look
at a program P&L you can see whether the program is paying for itself, so put all the
unrestricted stuff to Fundraising. This is called the lump-by-category method.
Alright? The next method is what most of you are going to use. This method is
called the “Individual” method. The individual method is what you want to
use if you want to use QuickBooks as a donor, member, or student database. So I’m going to
talk. I’m just going to stop here for a second. This is so important. If you want to get a thank
– you letter out of QuickBooks, if you want to get good donation
reports out of QuickBooks; can you? Absolutely; not so much with the Online Edition,
but fortunately you guys have the Desktop. You’ll be able to get a good
thank-you letter out of QuickBooks, and you’ll be able to get good donor reports,
but what that means is you need to understand the individual method for entering
income, which is very different. Some people say, “I already know how to
enter my individual items individually. It’s not hard Gregg. I put the name of the
donor here. I put individual contributions here. This was a check. What’s hard about this,
Gregg?” This is what a lot of people do when they’re new to QuickBooks. “I heard you, Gregg.
It’s unrestricted. I’ll put it to Fundraising.” Then we’ll make it $1 million. Then you go on
to your next check. This is wrong! [Buzzer sound] This is wrong! I want to make
sure you understand this. Why? If you want QuickBooks to give you a thank-you
letter, you ain’t gettin’ one if you entered it this way. The second thing is, you also
aren’t getting any good donor reports. Let me show you. QuickBooks has
all these really neat donor reports. I’m going to show one to you right now. It’s
called a Sales by Customer Summary report, and it gives you, basically, a list of in
this case, my donors and how much they gave me. I’m going to make it all dates, and then
I’m going to make the columns be by year. When you do that, what you end
up with is for each person’s name, you end up with their history over the years of
what they’ve donated. I’m going to zoom in now, so don’t get scared, just so you
can see it. We can see that this – Let me see. Who is this? This donor, Chad
and Marie Brown — I’m trying to move the mouse really slow – they gave $1,900 and
then $1,500. They gave every year. They didn’t give in this year. By the way, on
the phone today, in this webinar, it’s 2020. Welcome to 2020. Anyway, we have nothing that
this person gave. See how cool this report is? Maybe this person needs to get a call. I don’t
even think you can get these reports very easily out of these other donor databases,
but you can get them in QuickBooks, provided you enter things correctly.
Look at Parker and Faith Ashford. Their total donations
– $12,315. Watch what happens when I save this deposit. This is the wrong way. I’m going to go ahead
and save it. I’m going to refresh the report, and it still doesn’t have the transaction in
here. The reason why is because you entered it in the wrong place. QuickBooks has all these
really neat reports to use as a donor database. You’re not getting any of them if you entered
it in the wrong place, which is what we just did. I’m going to pull up the Make Deposit
window, and I’m going to go back one. I’ll click Previous, and I’m going to go
ahead and delete this because this is wrong. To delete a transaction, you just
go to Edit > Delete. Are you sure? Yes. That’s the wrong way. Now I’m
going to show you the right way. The right way to enter – You know
what? There’s 700 people on the call. Somebody knows the right way. What
screen should I enter donations on using the individual method? Tell Becky,
and Becky will tell me. Somebody knows. Becky: I have some folks, lots of
people saying, “Sales Receipts.” Somebody else saying, “Funds.” Gregg: It’s the Sales Receipt. There
isn’t really a button here called Funds, but if you look on your home page, if you
have QuickBooks Pro or Enterprise Solutions, your button is going to say “Sales
Receipt.” If you have Premier Nonprofit, the one you get from TechSoup, the
button is going to say “Donation,” but do not think that you need to get
Premier Nonprofit. Those of you that have Pro, you just click here. It’s going to say
“Sales Receipt.” It’s a sales receipt. Ok? This is what it says. It’s a sales receipt. Sales
Receipt and Donation are the exact, same thing. This is the right way to enter it. I’m
going to enter it the right way now. Parker and Faith Ashford, enter the check –
I know the screen looks a little different, takes a little getting used to, but it’s
really, honestly, the same pieces of information. It’s Fundraising, and it’s $1 million.
The thing is that once you enter it here, then it will appear on the reports. So let me
go back to that little Sales by Customer report. If you look at Parker and Faith Ashford,
the total is $12,315. I’m going to go ahead and save this sales receipt, and now
I’m going to go back over to the report, and if you notice, now – Let me zoom in, in
case you can’t see. Well, that’s not good. I’ll stay out. Sorry, I probably got you dizzy
– Now, Parker has over $1 million in there. Actually, if you double click, it’ll give you a
list of all the transactions, and you can print these things out and send them to the donor at
the end of the year, so they have a list of their donations. But I’ll give you one
better than that. One of the other advantages of using this sales receipt is
that you can actually email or print and mail a thank-you letter because you entered
it in on a sales receipt. Now, let me show you. If you go with the custom sales receipt,
which is the one that QuickBooks gives us — that’s kind of the normal one — the
form that you can print looks like this, which doesn’t have nothin’ to do with a thank
– you letter. But what you can do is you can change the template, and you can
create your own template. I’ve created one for a thank-you letter. I actually walk you
through how to do this in the training products, but I’m going to go ahead and show you
what this looks like. Print > Preview. When you print it, it looks like that.
Then you can email it directly to the donor, or you can print it and mail it. You
can email directly out of QuickBooks; you’ve been able to do it for years. Understand
what happens, you enter this stuff here, and instead of giving it to somebody
else to create the thank-you letter, when you press print or email, it comes
out like that. You can create these letters all on your own. I made up this letter, this
wording myself, if you’re trying to read the letter. Anyway, it’s very, very cool, but in order to
do this – I’m going to go ahead and close this – you do need to enter things
on the little donor receipt. You may say to yourself, “Well,
Gregg, I refuse to do that because now I have to enter a separate
thing, a separate receipt, for each donation.” Well, let me tell you something: if you are sitting
there entering a separate line for each deposit, when you get to the end of this line, you
have to click the mouse or tab or something to get to the second line to enter the
next donation or receipt, whatever it is. Well, when you get to the end of this
one, you just simply click Save & New to get to the next place. So it’s the same
number of clicks. Yes, it’s multiple forms, but it’s the same number of clicks. I know;
I’ve counted. Just to kind of hammer it home: if you do a deposit, name of the donor
here, Income Account, Check Number, Payment Method, Class, and Amount,
that’s the same fields that are here. They are just in a different location:
name of the donor, Income Account down here, Check Number, Payment Method, Class,
and Amount. It’s the same information. The only thing that’s different is I’m telling
you to put the name of the donor here. That’s easy. That just comes from the customer
list. You type the check number. This comes from the Class List.
This is a dollar amount you type. You push the payment method. The only
thing that’s weird is I told you to put — down here under item — I told you to
put the income account that it goes to. Well, that’s not really what’s here.
What’s here is something called “Items.” Now, I could spend two hours teaching you
what an item is. I’m not going to do that. You’re existing users. I’m assuming you
might know, but I bet a lot of you don’t. For you, items equal income
accounts. Items equal income accounts, and they’re used on the sales receipt form.
What you have to do is if you’re going to use this form, because you want to use QuickBooks
as a donor database, you gotta create items, one item for each one of your income
accounts. So what you’ll do is you’ll go to the Chart of Accounts List; you’ll look
over your Income Accounts. There they are. There’s, like, nine of them here. You
shouldn’t have too many to be honest with you. If you do, you probably want to look over
the webinar from a couple of weeks ago. Anyway, here’s Individual Contributions,
and you say, “OK. I know I’m going to use that income account. Let me create an item that
points to it.” To create an item that points to it, you go to Lists; you go to Item Lists; you go
to the bottom left-hand button; you click New. It’ll ask you what type of item it should
be. The default is Service. That is fine. Just leave it there. Name the Item. You
can name it whatever you want to name it. I like to name it the same name as
the income account that it points to: “Individual Contributions.” There’s a
place to put a default description and rate, but that would only make sense if
the item is the same price every time, which may be true for some of you.
If you have memberships that cost $65, you could put that rate in there, but
contributions are of all different amounts. But here is where you point it
to an income account, right there. By doing that, QuickBooks says, “Ok.”
Whenever I use this item on a sales receipt or a donation receipt, it’s going
to go, “Oh, you want it to go to the Individual Contributions Income
Account,” and it’s because it’s pointed to it, not because it’s the same name,
but because it’s pointed to it. Does that make sense to you guys?
“Yes, Gregg. That makes sense.” It’s so weird. There’s, like, 800 people
listening to me; but yet, I can’t hear any of you. It’s really kind of scary. I
already have one of these created, so I’ll just leave it there. You might
be saying to yourself at this point, “Gregg, this is really stupid. Why can’t I
just put the income account here like I do in the Make Deposit window? Why do
I have to create an item that points to an income account?” The reason why
is because QuickBooks was not meant for nonprofits. It really wasn’t. Even the
Nonprofit Edition really wasn’t meant for nonprofits. Think about it. This is really a sales receipt.
It really is. So forget about QuickBooks. Chat me up. Tell Becky. When do you
get a sales receipt in your life? Forget about QuickBooks. Forget
about work. Forget about everything. When do you get a sales
receipt? When you do what? Becky: When you buy something.
When you make a purchase. Gregg: At a store. When you make a purchase
at a store. Now, when you go to a store and you buy something, and they give you a
receipt, is it going to have the income account for the company’s general ledger on your
receipt? No! It’s going to have the items that you bought, so that’s why
QuickBooks puts the items here, because they were thinking that you’re going
to print this out and give it to the person. We might as a thank-you letter, but not as a
receipt at a store. That’s why they have items, and you can have many different items
that point to the same income account. It’s actually pretty cool. In the
training, we go into more depth than this, but you can have multiple membership
items that point to the same membership income account — that’s pretty cool —
so that you can really get more granular in terms of your type of income. There’s
actually a little report here I’ll show you: Sales by Item Summary report. This lists your
income by item rather than by income account. So without cluttering up your income accounts
with a bunch of different types of income, you can just have a few there and a bunch of
items that point to it. It also counts quantities. I have, let’s see, six memberships
so far. That’s not very many. I’ve received $1,096 individual
contributions since I opened the organization. The average contribution is $1,020.
That’s pretty good. This is really cool. Items are really powerful. The only other
thing I need to talk to you about this is – I’m going to delete this one because who gets
$1 million? If you get a $1 million donation, you probably aren’t on this call.
You’re probably doing something else. Anyway, let’s just do this like it’s
real life. This is what I want you to do. This is what QuickBooks wants you to do:
you go to the office; you open up the mail; there’s a check. They want you to enter the
check right now in this little sales receipt. It’s a check. Here’s the check
number. It could’ve been a credit card that you received online, but it was
a check. Either way, you enter it. We’ll point it to Individual Contributions.
It’s unrestricted. It goes to Fundraising, and we’ll say it was $25. Now, the
only other thing that I gotta teach you, and then we’ll be done with entering income —
This window right up here that says Deposit To, and then it’s asking you to put what bank
account it goes to – I know a number of you have been asking, “What bank account does
this go to?” Well, here’s where you tell it. Here’s the thing, though. What do you do with
that check for $25? If you are really hard-up for cash, and you have nothing else to
deposit, but you really need the money, and you’re going to bounce a check, you
might go running to the bank right then with that check for $25. If that’s what
you’re going to do, pick the checking account and then click Save & Close. It’ll actually
record the income, but it’ll also increase your checking account, so you actually
never have to go to the Make Deposit window. People do this if they get money from
the federal government where the money is automatically e-drafted into your bank
account. It just appears as an electronic funds transfer. Then they just record it and pick
the bank account. But that’s not what we do with our check for $25. What do we do
with that check? Forget about QuickBooks. Tell Becky where we put that check
in real life, not in QuickBooks. Becky: Folks are saying,
“In a drawer in your desk.” Gregg: Exactly. In the desk. What
you’re supposed to do in that case is pick this weird account that all
of us have called Undeposited Funds. What undeposited funds is, it is
the representation of the money sitting in the drawer. It’s an asset.
That’s why I hope you lock that drawer. QuickBooks has it in all of your QuickBooks
accounts. Every one of you already has this in your Chart of Accounts List. Some people
actually change the name of the account to “That money in my desk,” so
that they understand what it is. We’re not going to the bank yet, so
we wouldn’t pick the checking account. We’re putting it in a drawer. The other
thing is that if you made the mistake of picking Checking because you’re like, “Well,
it’s going to end up in the checking account,” but then not going to the bank, then
QuickBooks thinks you deposited every, single item on its own. So when you get
to the end of the month, doing a bank rec would be a nightmare because you
got a hundred deposits in QuickBooks, one for each item, and you got four, one
a week, at the bank on your bank statement. That’s why they have this intermediary
holding tank called Undeposited Funds. You may find in your data file
that this field doesn’t even appear, and that’s because they have this
preference where you can turn it on or off, and if it’s turned off, then you can’t choose.
It automatically goes to Undeposited Funds. I just turned off the preference so that I
could teach this. So I’m going to go up here to the Chart of Accounts List, and watch
this. See the bank account is at 101,414. That money in the desk is at zero. I’m
going to click Save & Close. Now it’s at $25, and the bank account hasn’t changed.
Good! It shouldn’t have changed! You should be able to look at this account,
and it should tell you how much money is in the bank. We hadn’t gone to the bank
yet. I’m going to go ahead and do one other one in case you missed it. This will be a
sales receipt again. I’m going to get to it from the icon bar this time — or the menu bar.
Enter Sales Receipt, and I will do a cash one. Cash — and we’ll say somebody was paying
cash for their membership — $710 cash. Wow! I wonder what that person does for a
living that they had $710 in their wallet. Anyway, this is for the Guidance Center.
We’ll put this in the drawer as well. Maybe you picked this up from them at an
event. That money in my desk is at $25, Save & Close, $735. The idea is that
even if you received it via credit card, you still do the same thing because
it’s not going into the bank yet, and it’ll probably be batched with other
charges. So it’s time to go to the bank. It’s the end of the week. Let me show you what
you do. Probably the best way to show you this is go to the home page. We’ve been doing
this button right here. When it’s time to go to the bank, you just follow the arrow.
First thing you do is open up the drawer, and then in QuickBooks – or take
the stuff out of your desk drawer – then you click this button here. By the way,
this number 2, this tells us that there were two transactions that should be waiting in the drawer
to be deposited. This is something they added in 2017 of QuickBooks. It’s not in
the older versions. I’m gonna click it, and then a window will pop up that gives you a
list of all the stuff that’s sitting in the drawer. This is wonderful. I love this. I like to call it
an internal control, and since I’m an accountant, and we do audits at my accounting firm, I like
this because if that money is not in the drawer but it’s on the screen, somebody
stole that money. So you make sure everything that you see on the screen is
in the drawer that you’re about to deposit. You check it off. You click OK, and it
copies it to the Make Deposit window. Then when you’re finished with
that – I’m going to go ahead and click on the Chart of Accounts
List because this is my big finish – So that money in the drawer had $735 in
it. The checking account has $101,000. I’m going to go ahead and save. This
records the fact that I’ve made a deposit, takes the money out of the desk drawer,
puts it into the checking account. So that’s, basically, the process. I could
go into more details, but I want to move on to expenses. Let’s just stop for a second
because that is a lot of information. Let me go ahead and take, maybe, three
or four questions, and then we’ll move on. So Becky, how are we
doing with the questions? Becky: Sure. We’ve got a lot, and a
lot are being answered in the back end. We’ve got about a hundred questions in the
queue right now. A bunch of people have said that they don’t have the Deposit To option,
like where you showed how you could list to deposit it to a specific thing. Is that
something that’s unique to the 2017 version of QuickBooks Premier or
something you need to turn on? Gregg: No. I think they – Because I did teach that,
I’ll just say it again. I taught this at the end. I don’t know if they were listening.
See where it says Deposit To? That’s because I have a preference turned off
that – The preference, when it’s turned on, it makes things go to Undeposited
Funds. I turn the preference off so that then you get the choice. Let me
show you where the preference is though. If you go to Edit, and you go to
Preferences, and you go to Payments, and you click on Company, you see this
one here that says, “Use Undeposited Funds as the default deposit to account?”
This is usually checked for people when they first get QuickBooks, and if
this is checked — I’m going to click OK – then it assumes everything goes to Undeposited
Funds. Let me get the home page back up. It assumes everything goes to Undeposited
Funds, so then when you click it, it doesn’t appear. I turn the feature
off, so I could explain how it works. We’ll take a couple more questions,
and then we’ll go. What else do we got? Becky: What if you get gift cards
donated or other types of donations that aren’t actually cash in your
hand? How do you record those in income? Gregg: Sure. Well, I was going to save it for
later, but I’ll do in-kind contributions next since people are asking. As far as gift
cards go, somebody gives you a gift card. There’s two ways to handle it. What some
people do is if the gift card is small, like, here’s a $50 gift card. I don’t really get
much in gift cards. It goes for office supplies, usually, is how I end up spending it.
So, basically, what they end up doing is recording it as in in-kind contribution.
I’ll show you how to do that in a second. But, if you have gift cards, and you get a lot
of gift cards, and you want to track how much is left on gift cards, then really,
your gift cards should be a bank account. So what people do – We’ll go to the Chart of
Accounts List, and we’ll create an account. This is one method of doing it. Make it
a bank account and call it “Gift Cards,” and you can put all your gift cards to
the same account. Then what happens is, when somebody gives you a gift card, you can
record it on a sales receipt as a donation. I’m going to go ahead and do it on a sales
receipt. It’s just like any other donation. We’ll make it an Individual Contribution,
Fundraising. Maybe we have a particular item set up for gift cards if we want to separate
it out, but it’s not really necessary. We’ll say the gift card is $1,000. Then what
you do is you go to the Make Deposit window, check this off, click OK, and
deposit it to the Gift Card account. I’m going to go ahead and click Save &
Close. Now what you have is an account for your gift cards with the balance in
it, and then as you use the gift card, people bring your receipts, and you can
literally use the Write Check window, and you can write a check out of the Gift
Card account for how you spend the money. Then this will always tell you how
much money is left in the gift cards. That’s really the correct accounting for
it. Now, I’ll do in-kind contributions, which is an alternative method if it’s not
really that many times you get gift cards, but we’ll do in-kind contributions next.
Let me just take one or two more questions before we move on into that. Becky: Ok. So if you don’t plan to use
QuickBooks to send thank-you letters or track your donors, what’s the
benefit of entering the sales receipts? Gregg: There isn’t. If you’re not
using QuickBooks to track your donors or send thank-you’s, then don’t enter
the sales receipt. There’s no benefit. Go ahead and just – Go ahead and
just use the Make Deposit window if you’re not interested
in tracking your donors. Becky: For those folks who are looking to use
it as a way to track donors or send thank-you’s, we have a lot of questions from people
asking how you created the template or where that was done for the thank-you
letter for your million-dollar contribution. Gregg: It takes me about 30 minutes to
teach that. That’s one of the chapters that’s in the training product, which we’ll discuss
at the end. I feel like I’m trying to sell you on something, and I know it sounds annoying,
but I promise you, it’s just because I don’t have time to teach it. The templates,
I will tell you where they are, though. If you go to Lists > Templates. Here’s all your
templates. And you go here, and you click New, and this is where you create your template,
but, again, it takes me about 30 minutes to create one. I can’t really do that live.
Let’s go on if it’s ok with you, Becky, unless there’s a burning
desire anybody has. Becky: Well, we had one other question
that a bunch of people had asked, just quickly, that people don’t know why
there are two fields in different areas of the sales receipt. Yeah, for Classes.
So why do we have two fields on that? Gregg: Good question. Here’s the deal. This
Class column, you actually don’t have to have this Class column, I changed the template
to add it. The benefit of having that is so then you can point one income to different
classes. But if the Class column wasn’t there, that’s why they had to have it up here.
What I’ll say to you is this Class column is really irrelevant. Let me show you
what I mean here. The only relevance to this Class column is it becomes the default
for what’s down here. This is what matters. You can leave this blank, but if you
filled it out, then what would happen is it becomes the default for the things underneath.
But I just leave it out, and I fill it out down here. This is the class that
matters. This one is irrelevant. If it’s ok with you, I want to teach the
in-kind contributions because we’ve got a little over 30 minutes left, and I want to get into
the expenses because they’re pretty cool. Becky: Yep. Let’s get into that, and just
a reminder that we are here until 30 minutes past the hour, so stay with us because we’ll
have time for a lot more and more questions. Gregg: Of course. Don’t go anywhere. This
is probably one of the most important moments of your entire life
coming up right now, maybe. Becky: Gregg, you’re so modest, too. Gregg: Well, it doesn’t have to do with me. It
has to do with QuickBooks because we all know and love QuickBooks. We really do. I’m just
wasting time as I open up my next little topic here. I should say something inappropriate
at this point, shouldn’t I? Probably not. Becky: Or not. Yeah. We’ll get it open, and
we’ll have time for lots of other questions and good stuff to be seen. We are churning
away at the questions on the back end. We’ve got 107 in the queue right now.
We’ve already answered about a hundred, so we are working hard on the back end. Gregg: Let me try this one more time.
It’ll work the second time. One thing – Let’s just talk real quick. What is an in-kind
contribution is probably a good question. An in-kind contribution is a
contribution of anything other than money, so it’s usually stuff or services that are
provided. It’s very important that we book our in-kind contributions because frequently
the main expenses for a new nonprofit are covered because they’re donated. If
somebody donates services or products, that’s important, and if you don’t book it,
then you don’t accurately reflect the true amount of donations you got. Just because somebody
paid for something rather than giving you cash, that’s still a donation. It also, more
importantly, doesn’t reflect the true cost of running the organization, so you
gotta book your in-kind contributions. We have a counseling center here,
and the counselors donate their time. They provide counseling to people
who couldn’t otherwise afford it. The counselors donate their
time. How would you book that? Even though this is the Nonprofit Edition, there’s
not a button here that you can push that says, “In-kind Contributions.” We don’t want to
do anything that affects the bank account because no money was exchanged, so we
have to figure out a way to enter it. Now, this might upset some of you, but the way
to enter in-kind contributions is by doing – are you ready – a journal entry. I know.
I can hear the sighs now, but some of us love journal entries. I’m going to go up
to the Company menu, and I’m going to click Make General Journal Entry, right here, and
this is where you do your journal entries. It’s very rare that you’ll do a journal entry
with QuickBooks. QuickBooks has these pretty, little pictures, but sometimes you need to
do a journal entry, and in-kind contributions is one of them. What you’ll want to do is,
first of all, in your Chart of Accounts List, you’ll want to create an income
account called “In-Kind Contributions.” Some people call it In-Kind Gifts. You
just need one. You don’t need more than one. Then you’ll want to make that account go
up. How do you make an income account go up? Do you debit it or credit it? Why
doesn’t somebody chat me up and answer? Do you debit it or credit it? I
just want to see if anybody knows. Becky: Lots of people are weighing in: credit,
a couple debits, but most are saying credit. Gregg: That’s right. The answer is you credit
it, and I’m going to pop this up on the screen just to make you happy, and it’ll
make you laugh. This is a little chart. It’s Alice, and Alice is pregnant. See how
she’s pregnant? And if you want to make an asset go up, you debit it. If you want to make a
liability go up, you credit it. An income account – you’re right. You credit it. An equity or capital account
– you credit it, and you debit an expense account to make it go
up. All of these things will make these accounts go up. If you want to make it go down, obviously,
you do the opposite. That’s pretty cool, isn’t it? If you tell me that was your favorite part of
the seminar, I’m going to be upset with you. So we’re going to make this go up. Now, what
value should we pick? Well, if it’s a product, if it’s something like bags of clothing that were
given to us, you want to do the fair market value. If it is a service, the service needs to be valued
at what the person would normally charge for it. This person is providing counseling
service. They normally would charge $100. They’re only charging us $20,
so the other $80 is a donation. Just because they don’t discount it to
zero, if they just give you a discount, but you still pay them something, you still
want to book the rest of it as an in-kind: 10 hours in the month, $800.
Then the other side of the entry – that will go to whatever expense
account you normally would have put it to had you written a check for it. I’m going
to put it to the Counselors expense account. Of course, you’ll want to also put it to an
appropriate class. This is a counseling center and their main program is the Counseling
Center, so we’ll put it to the Counseling Center. As you can see, what we’ve done here
to record this in-kind contribution is we’ve made revenue go up,
and we’ve made expenses go up. So we haven’t really affected the net profit and
loss at all. I’m going to go ahead and save it. But when you look at a P&L – Let’s see. We’ll
just do a standard P&L – you’ll see this $800. I don’t want to make you dizzy – Here’s In-Kind
Contributions income of $800 and then $800 in expense. What it does, particularly
if you make the P&L by Class, is the $800 shows in the Counseling Center,
so it increases your program expenses as a percentage of your total. That’s what’s so
beneficial about booking in-kind contributions, especially if they benefit your programs.
The only other thing that I’ll say about this, and then we’ll stop and take some questions
is, some people get a little bit weirded-out about booking in-kind during the year
because when they report to the board, it kind of messes up your Budget to Actual
report, so I kinda wanted to show you that. Let me pop up this report here and make it
total only. Here’s a P&L Compared to Budget that you would send to your board of directors.
You’ll notice that in-kind contributions, the Actual is $800. People don’t usually
budget for their in-kind, so this is at zero, which doesn’t really upset a board
member, but look at the Expenses. If you didn’t budget to include your in-kind,
then it would look like you spent money over your budget for counselors because we
only budgeted for $100, and we spent $800, but that’s not money we spent. It’s services
that were donated. What some people do is they create a separate set of in-kind
expense accounts and put the expenses there. I don’t, actually, like that. What I
tend to do is, if it’s a big organization and you really rely on your in-kind, I budget
to include in-kind. Otherwise, another option is just to wait to book your in-kind until
the end of the year. That way the board won’t give you any troubles through the year.
I think that’s it for in-kind, so I’ll stop and see if anybody has any questions,
and then we’ll move on to expenses. Becky: We do have a number of people asking,
how do you get to what the fair market value is? Of course, you can just ask the person if it’s a
service. I just wanted to mention that there are, also, fair market value estimators that are
out there. Like Salvation Army has one online where you can pull up and see what the
fair market value is of different products, so you may be able to use a tool like
that. Yeah. A lot of those kinds of big, charitable organizations that receive
goods, they have to provide a receipt that estimates fair market value for
people’s taxes. You can look those up and use those to establish fair market value
for a lot of goods if it’s clothes or shoes or household things. But if it’s for services, the
best thing to do is to ask that service provider how much is your regular rate and how
many hours, or is there a flat rate you would charge for this
so that you have something that tells you what the
actual cost would be. Gregg: And you do want to get a – You
do want to get an invoice for them, some sort of documentation of what that
dollar amount is to give to your auditor at the end of the year. Now, if somebody bought
something new, then you can just have them give you the receipt. A lot of
times the board members will do that. I was looking to see where it is on this
website. Anyway, is there another question, or should we move on? Becky: Just looking at time, I
think we can go ahead and move on. We are still continuing to
answer a lot on the back end. Gregg: Ok. Cool. Then I will move
this out, and we’ll move on. Alright. We’re going to move into expenses now, and
we’re going to end with restricted grants. When it comes to expenses — and
somebody asked me this question earlier — and unfortunately, I do need to go to a
different data file – they wanted to know — Becky, you had read it — what the
difference is between entering a check through the Banking menu versus entering
a bill, which is through the Vendor menu. That’s a really good question to ask.
Really the difference is it just depends upon whether or not you want to use
QuickBooks to track your bills or not, which, I think, you should. If you just
use the Write Check window, then QuickBooks doesn’t know what your outstanding bills
are. And when you report to your board, I’m going to tell you that if I’m on your board,
I want a P&L that includes any outstanding bills. That would mean that when you print your P&L,
you have to have entered your outstanding bills, and then you need to print the report, accrual
– based, so it’ll include your outstanding bills. I’m going to tell you, I don’t think you
should go to the Write Checks window very often. I think what people should be doing is entering
bills and then going through the Pay Bills screen to pay them, but I’m going to show you
how to do both methods here in a second. I don’t know why my mouth is no longer
working and neither is the data file. We’re stuck here for a second. Once this opens
up, I’m going to show you the appropriate way to enter your bills and pay your bills. This
is taking a really, long time, and I’m stuck. Let me see if there’s
anything I can do to fix this. Becky: If you want, we can take a couple of
questions while we try and get it to load up if that works for you. Gregg: Yeah, yeah, why don’t you do that
because for whatever reason this isn’t – It’s stuck. Go ahead and
take a couple of questions. Becky: Sure. For example, Donna asks, “What
if your CEO purchases an asset for the office with their own funds, and they don’t want to
be reimbursed?” Is that something that counts as an in-kind donation, or is that something
that she just reimburses as a business expense? Gregg: If they don’t want to be
reimbursed, that’s an in-kind contribution. It’s just that what they bought was new
instead of used, so you would enter it in as an in-kind contribution. It wouldn’t
be, necessarily, on a thank-you letter. The thank-you letters would
necessarily include money but not stuff, and then there’s a separate place on their
individual tax return where they put the stuff that they gave rather than
money. What else do we have? Becky: So when you say – Sue asks, in
particular, “What do you print for a receipt for the donor of an in-kind donation?” So
when you said you don’t want to put money, necessarily, what do you give
them to show that they donated? Gregg: Great question. You give them
something that doesn’t have a dollar amount on it, and you don’t give it to them
out of QuickBooks. You ever notice when you go to Goodwill and you make a
donation, and they give you something, it doesn’t have a dollar amount on it?
It’s because Goodwill doesn’t want to be on the hook if you get audited by the IRS,
and you valued that bag of clothing at $5,000. Goodwill doesn’t want you giving them a receipt.
“Well, look, Goodwill said it was worth $5,000.” That’s why you – Basically, the onus is on
the donor to figure out the dollar amount. Now, you have to also figure out
what value you’re going to book it at, but you book it at what fair
market value is according to you. The donor, who knows what they’re
going to book it at? It’s up to them. So you don’t give them something
out of QuickBooks. Next question. Becky: Let’s see. We’ve got, again,
following up on that, you would not put what the fair market value is on their receipt;
you would just leave that for them to fill out. You would just determine the value in
your own books when you’re doing it. Gregg: That’s exactly
right. That’s right. Becky: Ok. Lots of questions
just clarifying that. Gregg: Cool. Maybe this was good that
my computer died so that I can answer those questions. Becky: Yeah. A lot of people were curious about
how to do that so this makes a lot of sense. Gregg: Except, where is QuickBooks?
It seems to have disappeared. Becky: What if somebody donates their
services as a volunteer? How is that billed? Do you bill volunteer hours as their, maybe, non
– professional hours, just labor? Or if they are professional, and it’s a
professional service that they’re donating, like transcription, does
that make a difference? Gregg: Yes. It’s very important. This
is an accounting thing. Sorry about this. I’m having an issue here. The only thing
that you book is services that are provided by a professional that does that service
professionally. So you would not be booking volunteers that just take tickets at a show,
or perhaps they come in and answer the phone for a little bit. That’s not something
you would book. The accounting gods don’t want you to do that. You only book
something that was offered by somebody that does it professionally. Let’s move on
because we’ve only got about 20 minutes left, 22, and I need to cover
expenses. Sorry about that. The expenses — Again, I’m going
to tell you to enter in Pay Bills. Let me just show you how to enter a bill. Click
Enter Bills. Nothing real complicated here. This will just take a second here. We’ll
enter the bill, and let’s see. We’ll put AT&T, and here we put the date of the service.
We put the reference number here. This is, basically, the number on the bill.
We put the dollar amount here, when it’s due, whatever the expense account is, and this can
actually be printed out if you would like to. I’m going to click Print, and you can print
what you’ve entered. A lot of people do this because when you print it out, what it
shows you is, basically, what expense account you pointed it to, what class you pointed it
to, and we’re going to show you how to use this customer job field to track grants, but
it shows you that too. But the point is, you can put this on somebody’s desk,
and they can approve it both to pay it, but they’re also approving where it was pointed
to, which is another really good internal control. That’s something you can do with
the QuickBooks Desktop that you have. People that have the Online Edition
don’t have the ability to do that. The other thing that you can do when you enter
a bill is you can attach an electronic copy of the actual bill. I’m going to click
Attach. You’ve been able to do this for years. Then if you hadn’t scanned it yet, then
you click Scan. If you’ve already scanned it or it came in electronically, you can click
Computer, and then it goes to your browser, and you browse around your computer looking
for it. Here’s my bill right here. I click Open. I click Done, and now you’ll see, there’s a little
1 here. What that means is, whenever I get a call from AT&T, and I want to get a copy of
the bill, I’m sitting in front of my desk, I don’t have to see the actual bill attached to
this bill. I can just click here, click on here, and it’ll open up an actual picture of the bill.
Let me show you. It’s over on my other screen here. There it is right there. So that’s a cool
feature. It’s free, and I think it’s really neat. This expense right here, Telephone,
we’ll say this telephone is specifically for the Guidance Center, so we’ll
point that to the Guidance Center. I’m going to go ahead and save this. Some
expenses – and I wanted to teach this – some expenses, they don’t necessarily
automatically go to the same place. In other words, they need to be split. A good
example of that would be, like, utility bills. Let me see if I have Atlanta Gas in
here. No, I don’t. So Atlanta Gas – this is where we pay our gas bill here in
Atlanta. What I’m going to do is I’m going to say, “You know what? This bill needs to be split,”
so I’ll make it $350, and I’ll put here, Gas. But I’ll say, based on square footage – and
that’s what you do. You base on square footage and say, “You know what? 80% of my
space that I rent is used for program,” so I’m going to put 80% of this to
the program. So I’m going to take $350. I’m going to multiply it by 80%. $280, that’s 80% — Oops
– not 0%. I’m just putting the percentage here
so that we can rough call on it later. It’ll be important in a second — to the Guidance
Center. And then I’ll put the rest of it, which is 20% of it, to Admin. That’s, basically,
how to enter a bill when you need it split between classes. I’m going to get QuickBooks
to automatically memorize these percentages, but I’m going to do it in a second. I
want to finish what I’m teaching first. That’s how you enter bills. Let’s put
a reference number here for this bill, and then I’m going to click Save & Close.
Now, when it comes time to pay bills, do not go to the Write Checks window because
if you do that, then QuickBooks doesn’t know the bill has been paid. I know that you
might want to get a check out of QuickBooks, but don’t go to the Write Checks window.
Instead, you go to the Pay Bills window. I’m going to click Pay Bills. Here is all my
bills I’m going to pay. You select which bills you want to pay. I’ll select this one
and this one. You pick the bank account that you’re paying out of, and here is – look
at this – here’s two bills to the same vendor. I’m going to check them both off. How
many checks are coming out of the printer? Why don’t you chat up and tell me, how
many checks are coming out of the printer for Tuoghy’s Catering if you
check both of them? Who knows? Becky: Let’s see. Lots of people just
saying, “one.” Some people guessing, “two.” Gregg: Yeah. Just one. That’s right. No,
it’s just one. If you want separate checks, you have to check off this one, and then
click Pay Selected Bills, then go back into the Pay Bills screen. The other one will
still be there, then you check the other one. But if you check both of them at the
same time when you’re in this screen, only one check is coming out of the
printer. Now, Wackenhut, I’ll go ahead and check them off. Anybody see a
problem here? Go ahead and tell her. Do you see any problems here? Becky: Let’s see. I’m waiting for
chat to come in. Tell me what’s wrong. It says, “negative balance,
overdrawn, not enough money.” Gregg: Exactly, and that’s because it
assumes that I want to pay 100% of every bill, which is crazy. I’ll just pay $3,000 of it. That
way we’ll have some money left over in the bank account. Don’t worry! The rest of it will
be outstanding and will be there to pay the next time you go into the screen. So
that’s, basically, how you pay your bills. Now, if you are the kind that print your
checks, then you would click To be printed, and you would select Pay Selected Bills,
and then it’ll create those checks. Here they are. And then you click Print Checks.
QuickBooks has a list of checks to print. There were other checks that
were waiting to print anyway. You make sure that this is the right bank
account. This is the right check number. You gotta order these checks.
You can order them from Intuit, or you can order them somewhere else.
You can order them from your bank. I’ll click OK. QuickBooks has three types of
checks: the wallet, which very few people use. The standard is nice because it prints
three checks to a page, but most people use the voucher, and the reason why –
Whoa! I know I made you dizzy there – the reason why is because the
voucher is an 8.5×11 sheet of paper. The top third is your check; the middle
third is a voucher that goes with the check. It lists all of the bills that you’re
paying complete with their reference numbers, and then the bottom third is perforated
so you can tear it out [tearing sound] and you tear the bottom third out, and
you staple it to your copy of the bill, and you put it in the vendor file. It’s nice
and anal-retentive, and everybody loves it. This is what you would do if
you want to print your checks. If you don’t print your checks, you can
still do the Enter Bills/Pay Bills thing. It’s just that when you go to pay the
bills, you click Assign check number. You click Pay Selected Bills, and then
if you are going to hand-write a check, they’re assuming that you have the
checkbook next to your computer screen, and you write the check numbers
there. Now, we are in 2017. A lot of people don’t pay checks anymore;
they pay online. If you pay your bills online and you’ve entered the bills in QuickBooks,
you simply type in the check number field – I bet you a lot of people didn’t know
you could do this – you type “online.” Then you’re basically telling
QuickBooks that you’re paying it online. So when you look at the check register, you
will see that anything that has been paid online, where the check number is, it’ll
say online, which is perfect. I think that’s what I want you to do. I
want you to enter your bills, pay your bills, enter your bills, pay your bills. The only
caveat is if somebody – how do I say this – when would you ever use
the Write Checks window? The only time I really use the Write
Checks window is for two reasons: one, if somebody comes into the office,
replaces the copier or something, somebody does a repair, and they want
money immediately. In other words, as soon as I found out about the
bill, I had to pay them immediately. You might as well just write them a check.
If somebody steals a check out of your drawer and goes to the office supply store and
then says, “Oh, by the way, I took a check, check 1005. Here’s the receipt.”
You might as well just enter a check. If there’s no delay of payment, enter
the check. That’s fine. Another reason: a lot of people have debit cards. I’m sure
tons of you do. There’s not a button here for debit cards. To enter debit card
transactions, go to the Write Checks window because if you think about it, a debit card
is like a check. There’s no delay of payment. It’s just that when you paid it, you didn’t
give them a piece of paper; you gave them a card, but it’s still like a check. Then
over here in the check number field, you can just put “debit.” I’ve got
two more little things to teach. Let’s stop for a second, and I’ll take a couple
of questions, and then I’m going to teach you how to spread expenses automatically.
Go ahead. What do we got? Becky: We have – You covered the debit, which
we got a lot of questions on, so thank you for that. We also have people asking,
“How do you record credit card and PayPal?” Gregg: PayPal is like a bank
account. What you’ll want to do is go into your Chart of Accounts List and
create an account called PayPal. “PayPal.” And then what you’re supposed to do,
everything else is completely obvious. You make deposits into PayPal. You
just go into the Make Deposit window. You do the sales receipts into PayPal, and then
when you want to transfer money out of PayPal into the checking account, you go
to Banking and you go Transfer Funds, and you transfer out of PayPal into
checking. I wish I had more time. I just want you to understand:
PayPal, treat it like a bank account, like any other bank account.
As far as credit cards, go to the Chart of Accounts List, bottom, left
– hand button, New. There’s an account type called Credit
Card. You set up the credit card here. Think of it as a payable account outside of the
rest of payables. This is where you enter it, or where you set it up, and then
there’s something in the home page I think – there — Enter Credit Card
Charges. You click it. You pick the card. This is from your Chart of Accounts list,
and you enter the charges right there. That’s, basically, how to handle it. It’s in
the training products, but I don’t have time. I’m going to move on here so that we can
finish right at 3:30; otherwise, I’d go in more, but it takes about 20 minutes to
teach that. So if it’s ok with you, I’m gonna do the last two things we gotta teach.
The one thing is where to track restricted grants. I think I can do that fairly quickly. I
need to change to a different data file. What a lot of people have, they have
grants, and the grants are restricted, and the most important thing you gotta
find out about a grant when it’s restricted is how you spent that money. A lot of people will
try to use the class feature to track expenses that are being paid for out of a grant.
They’ll create a class for the grant. Well, that’s wrong because we’re using
classes specifically for your programs. We’re not using them for your grants,
which means we need another thing to track our grants, another list. What we’re
going to use, what I’m advocating that you use is the Customer List. What you want to do is,
each grant you want to put in the Customer List, and I’ll show you how I have this set up. We’ll
go to the Customer List here, and you’ll notice – I’ll just pick these two. You see how I have
a grant called Help 4 U, and then underneath it I have two sub grants: one for 2019
and one for 2020. If you have a funder that you get money from every year,
you want to set them up as a customer, and then you want to set up sub
customers — QuickBooks calls them Jobs. This was something we talked about a couple of
weeks ago – for the individual grants by year. But you want to have a separate name in
this list for each year. The benefit of this is that when you’re entering a transaction
– and I’ll just show this real quick, and then we’ll finish up – here’s
where you put the expense account. Here’s where you put the class, and here is
where you can put if it’s paid for out of a grant. So you do that for each one of your
expenses, and then let me show you how you can get a report, showing you how
your money was spent. Profit & Loss Standard — We’ll make the P&L. We’ll make the date range
all dates, so it incorporates all transactions, and then we’re going to go to Customize,
and we are going to select the Filters tab, and we’re going to filter this report to only
include the grant that we are interested in. So then all transactions that were pointed
to it will appear. I think I have one for the Villa Foundation. I’ll click OK on
that one, and then what it gives me is the money that I got in for the grant as well as all the
money that was coded or pointed to that grant. If you click on any of these, it’ll take
you to where the transactions were pointed to the Villa Foundation. That’s
how that works. I know that’s a lot. We only have six minutes left, and I
don’t want to be rushed at the end here. How do you want to handle this at the end? I
had one more, little thing I wanted to show, but it’s gonna take longer than six minutes.
It’s probably more important that we take time for questions. Becky: Yeah. I think we have questions. We also
have to show a little bit about the programs, where to get them, coupon codes, stuff
like that because we have a special offer. Gregg: Yeah. Let me go to that. Becky: Oops. Here we go. For the next
48 hours – Go ahead. You can do it. Gregg: Ok. We have training
products that we sell. One of them is called QuickBooks Made Easy –
The Essentials. That one you can get from TechSoup. The other one
is called QuickBooks Made Easy – Beyond the Essentials. Normally we sell
it for, I think, $249. It’s $149 here. So you’re getting it at a very big discount.
We also have – And what it is, it is six hours on a DVD that goes into much more detail
than we do here. There’s a chapter in there about how to get the thank-you letters. There’s
a chapter in here for – There’s two chapters for churches on how to track funds. There’s
chapters on how to track capital campaigns. There’s all kinds of extra stuff in there, a lot
of the stuff that we cover during the seminar. I’m going to give it to you for
$149, but it’s only for 48 hours. You go to the QuickBooks Made Easy
website and use this code: 17BE149. The other thing that I’m going to do
is we have technical support agreements where you can call. I know a number
of you already have them with us. And for one year you will be able to call us
day, night, on the weekends. There’s a team of us, there’s three of us that will answer
your questions, and I know a lot of you are going to need this. It normally is $300 for
the year. We’re going to give it to you for $149, and we’re only going to give it to you
for 48 hours. Here’s the code: 17TS, and then the code for the products: 17BE149.
You go to the QuickBooks Made Easy website in order to get that. I’ll turn it back over to
you to finish up, and then if we have any time, I’ll take some more questions. Don’t
leave the phone yet. Go ahead, Becky. Becky: We have this quick poll question
for those of you who want to get more info from Gregg. You can yes or no on this
question to let us know if you’d like to get their monthly newsletter. It’s once a month.
They send out little, short video clips and tips on how to use QuickBooks better, so feel free
to answer that. At TechSoup we don’t give out your information to any of our donor partners
unless you opt in, so we will not share your information unless you select
yes. Like I said, it would be that once a month newsletter from Gregg.
Then I want to make sure people know where to actually get QuickBooks or
upgrade if they are needing a newer version. Like we mentioned, Intuit only
supports their products for three years, so if you’re on a 2014 version, you’ll need
to upgrade – or earlier version than that – you’ll want to upgrade so that you’re
not using a version that is insecure. You can do that by going to techsoup.org,
select on our Product Catalog list, By Donor or Company, and go to Intuit. They’re
the ones that make the QuickBooks products, and you can also see QuickBooks Made Easy
here on this little screenshot as well. You can access the 1-user license for
$50, the 3-user license pack for $125, and you can request these every year,
so if you need more than three licenses, you can just wait and get another
set the next year. QuickBooks for Mac, which is available again. It was
not available a couple of weeks ago, but it will be retiring soon according to
Intuit. So they’ll be trying to move folks on to QuickBooks Online at some
point, I’m sure, from that product. That’s available on our site
at Intuit, techsoup.org/intuit, and you can get the QuickBooks Made
Easy at techsoup.org/quickbooksmadeeasy. I also just want to let people
know that we have some helpful sites that have additional resources, articles,
related content where you can learn about the different products: Intuit-software-
nonprofits, and we’ll share that out with lots of little video clips and what-not.
We are just a couple minutes from stopping, so I’ll just ask a couple of quick questions.
We had a bunch of people asking how to memorize, and I know you’d mentioned it a
few times, but is that something that you can cover in 20 seconds? Gregg: Yeah. Yeah. I’m sharing my screen
again. Can you see the QuickBooks screen? Becky: It looks good. Gregg: Ok. Cool. Memorizing – I’m not sure
if they’re talking about memorizing reports or memorizing a transaction. But if you pull
up a report – I’ll just pull up a little P&L, and I’ll just make the date range this fiscal
year to date, and I can make any changes that I want to. This is the little button where
you memorize the report. We click Memorize, and I’ll just name it “my P&L,” and click
OK. Now, that report, you don’t have to find or create anymore. You just go
to Reports > Memorized Reports, and here’s my report right here. Pop it up
on the screen. What’s the other question? Becky: We have a question about for in-kind
donations that you plan to sell or raffle or re-gift. For example, if you take cars as a donation, but
you know that you’re going to be selling them, how do you best track those? Gregg: Let’s talk about that offline. That’s going
to take a little bit of time. Sorry about that. Becky: No problem. Where would people manage
pledges if you call folks and they say, “I will donate $20,” but they
don’t actually do it at that moment. Gregg: A pledge is a promise to pay in the
future, and we actually have a whole chapter in that in the Beyond the Essentials. I think
it’s in The Essentials training product as well. You would use the invoice feature for
that because it’s a promise to pay, so that’s where you would use that feature.
You use invoices, but I gotta teach invoices, and I don’t have the time to do that
because we only have a few seconds. What else do we have? Becky: This will be the last question for today.
Is there a way to provide an annual summary of individual in-kind donations
from a specific person? Gregg: There is. It’s in the Beyond
the Essentials training product. It shows you where to go, but it involves –
I’d have to go back to that other data file – but it involves doing, basically, a report in the
Chart of Accounts for your in-kind contributions. I’d have to go to the other data file. But it
involves doing what’s called a quick report, and then sorting it so that it prints
out a separate page for each person. We cover it in the Beyond the Essentials
training product, which is the one that I was talking about. Here’s our website.
If you go to either Products or Tech Support – So if you want the nonprofit product, you go
here. I’ll give you a little trick by the way. If you buy the Beyond the Essentials training
product, which is right here, it’s normally $229 plus shipping. We’re giving it to you
for $149. When you add it to the cart, you can add tech support for an extra $100, just
$100, and then you get it for an entire year. It’s a pretty good deal. But you’ve got
until Friday at midnight, I think. That’s it. Becky: Great! I’m going to go ahead
and stop sharing since we are past time. I’d love to have you chat in one thing
that you learned during today’s webinar that you are going to take back and try and
apply to your own instances of QuickBooks. We’d also like to ask you to complete that post
– event survey that will pop up when you exit out. We’d like to remind you that you can access a
lot of courses that are available for you for free at TechSoup’s new learning management
system platform at techsoup.course.tc/catalog and invite you to come to
upcoming webinars and events. We have, later this month, a way to maximize
your tech donations through TechSoup, and we have, coming up in early April,
a disaster prep and recovery webinar. There’s lots more coming; they’re
just not on this list today. If you have questions that we didn’t have time
to answer, the best way to access those is, really, to reach out and get that tech
support from Gregg. Check out those products that do the trainings in-depth. In 90
minutes there’s only so much we can fit, so we really appreciate the folks on
the back end: Debra, Megan, Keity, David. Everybody’s fingers are working to the
bone here trying to get questions answered, so we really appreciate your time on that.
Thank you to David and Gregg, especially, and Susan on the back end here at
TechSoup for all of your support. We really appreciate that you joined us
today, and we hope that you’ll come again soon. Thanks a lot. Bye-bye. Gregg: Thanks, guys!

5 thoughts on “Webinar – QuickBooks (Desktop) for Existing Nonprofits – 2017-03-22

  1. I have to do some clean up work for a non profit and I need to track the donations. My dilemma is even though they kept the donor’s name and amount given, I may not be able to match them up to the deposits because they don’t know when they made the deposits. They are not using any software and want to switch to QB. Also, how do I record cash given without a donor’s name?

  2. Loved the video. I do have a question. I am the incoming treasurer for a service club. We have income generated from a snack bar (food). Where do I show cost of goods sold? As an expense or as an offset to income (displaying net income on the P&L)?

  3. Please add the shortcuts to the different topics in the description:

    3:32 – Agenda
    10:46 – Setting up Lists
    12:16 – Setting up the Class List
    20:30 – Entering Income
    21:44 – Entering Income – "Lump by Category" method
    24:54 – Entering Income – "Individual" method

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