5 QuickBooks Tips for Nonprofits
Posted on Wednesday, March 28, 2012
1. Require Passwords. Each user should have a unique password for accessing QuickBooks to prevent unauthorized access to your organization’s financial information.
2. Use Classes. Generally accepted accounting principles require nonprofit organizations to report expenses by functions – program, management and general, and fund raising. Classes provide a way for organizations to track these expenses. Classes should be set up for each program, as well as management and general and fund raising. By using classes, the necessary reports your nonprofit will need can easily be created with a few mouse clicks.
3. Use Jobs. Using the jobs feature in QuickBooks allows you to track the revenue received and expenses paid from various grants. Each grant should be set up as a separate job. As you are recording receipts and paying checks, the respective job should be assigned to each transaction. You will then be able to easily run a profit and loss statement for each grant.
4. Budgets. By setting up a budget inside of QuickBooks with projected revenue and expenses at the beginning of the year, you can easily compare budget to actual at any time throughout the year to determine how your organization is performing.
5. Turn on the Audit Trail. The audit trail feature keeps track of all transactions entered and changes made, as well as who did it. Not only does it show what accounts were affected but it also shows the exact date and time the change was made. This feature provides an added control for your organization against fraudulent activity.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
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